Firms a and B Have the Same Current Ratio, 0

question 37

True/False

Firms A and B have the same current ratio, 0.75, the same amount of sales and cost of goods sold, 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:

International Law

The law that governs relations among nations. International customs and treaties are generally considered to be two of the most important sources of international law.

Controlling Authority

The legal principle or precedent that must be followed by a court within its jurisdiction.

Legal Encyclopedia

Comprehensive reference works containing information on various legal topics, aiming to provide an overview of laws and legal principles.

Law Review

A scholarly journal focusing on legal issues, usually run by students at a law school, which publishes articles written by legal professionals and academics.