The Quick Ratio

question 216

Multiple Choice

The quick ratio

• A)is generally larger than the current ratio.
• B)decreases when a company's assets becomes more liquid.
• C)increases when a company has more cash sales than credit sales.
• D)is larger when a company's assets are more liquid.

---

Definitions:

Implementation

The process of putting a plan, decision, or model into effect in order to achieve a goal or solve a problem.

Decision-Making Stage

The phase in the problem-solving or decision-making process where options are evaluated and a choice is made.

Behavioural Decision Model

A concept in psychology that examines the decision-making processes individuals use, including biases, judgments, and social influences.

Limited Information

A condition in decision-making processes where all necessary data or details are not available to the decision-maker.