Firms a and B Have the Same Current Ratio,0

question 19

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 than B.Therefore,we can conclude that A's quick ratio must be smaller than B's.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used to quantify the risk associated with a particular investment or portfolio.

Gold Stock

Shares in gold mining companies or in exchange-traded funds or instruments that invest in gold.

Good Economy

A state of economic prosperity characterized by high employment, steady growth, and controlled inflation.

Poor Economy

A condition where there is a decline in financial and economic activities, leading to higher unemployment rates and lower consumer spending.