Firms a and B Have the Same Current Ratio,0

question 62

True/False

Firms A and B have the same current ratio,0.75,the same amount of sales,and the same amount of current liabilities.However,Firm A has a higher inventory turnover ratio than B.Therefore,we can conclude that A's quick ratio must be smaller than B's.

---

Definitions:

Erikson's Crises

A series of eight stages through which a healthily developing human should pass from infancy to late adulthood, each stage marked by a different psychological crisis.

Autonomy versus Shame and Doubt

A stage in Erik Erikson’s theory of psychosocial development where toddlers learn to exercise will and do things for themselves or they doubt their abilities.

Animism

The conviction that every object, location, and being holds a unique spiritual presence.

Postconventional Moral Reasoning

A stage of moral development where individuals make decisions based on internal principles and the consideration of universal ethical rules.