If a Firm Has High Current and Quick Ratios, This

question 29

True/False

If a firm has high current and quick ratios, this is always a good indication that a firm is managing its liquidity position well.

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Definitions:

Standard Deviation

An assessment of the extent to which values in a set are dispersed or varied from the mean, highlighting the differences from the average.

Z-score

A statistical measure that describes the position of a data point in terms of standard deviations from the mean.

Standard Normal Curve

A bell-shaped curve that represents the distribution of data in which the mean is 0 and the standard deviation is 1, used in statistics to represent theoretical distributions.

Z-score

An analytical indicator showing a value's position in relation to the average within a collection of values, expressed through its distance from the mean as measured in standard deviations.