The Current and Quick Ratios Both Help Us Measure a Firm's

question 78

True/False

The current and quick ratios both help us measure a firm's liquidity.The current ratio measures the relationship of the firm's current assets to its current liabilities,while the quick ratio measures the firm's ability to pay off short-term obligations without relying on the sale of inventories.

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Definitions:

Shaping Process

A technique in behavioral psychology used to teach new behaviors by successively reinforcing behaviors that approximate the target behavior.

Drug Addict

An individual who has developed a dependence on a substance, leading to psychological and/or physical addiction.

Mother's Bloodstream

The circulatory system of a pregnant woman through which nutrients, gases, and wastes are exchanged with the fetus.

Inherited

Passed down genetically from parents to their offspring, referring to traits, conditions, or predispositions.