A Company's Quick Ratio

question 6

Multiple Choice

A company's quick ratio:

• A) indicates the length of time the company takes to pay its short-term creditors.
• B) indicates how quickly the company converts its current assets to cash.
• C) is computed by dividing current assets by current liabilities, excluding accounts payable for inventory purchases.
• D) can never be larger than its current ratio at the same date.

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Definitions:

Sense of responsibility

The feeling of duty or obligation to perform tasks or roles appropriately and to take care of others or the environment.

Morality of care

An ethical perspective emphasizing the importance of understanding relationships, empathy, and caring actions in ethical decision-making, contrasting with more justice-oriented approaches.

Carol Gilligan

An American feminist, ethicist, and psychologist known for her work on ethical relationships and moral development, particularly in the context of gender.

Conventional morality

A stage in moral development where individuals conform to societal norms and laws, often to uphold authority and maintain social order.