What Does a Quick Ratio of Less Than One Typically

question 85

Multiple Choice

What does a quick ratio of less than one typically indicate?

• A)The company does not have enough quick assets to settle its current liabilities.
• B)The company is unprofitable.
• C)The company has a very high debt-to-equity ratio.
• D)All of the answer choices are correct.

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Definitions:

Organizational Capacity Building

The process of developing and strengthening the skills, instincts, abilities, processes, and resources that organizations and communities need to survive, adapt, and thrive in a fast-changing world.

Development

The process of growth, progress, or improvement in various contexts such as economic, social, personal, or technological areas.

Cost-Per-Dollar-Raised Ratio

A metric used in fundraising and nonprofit management that measures the cost of raising one dollar of donations.

Fund-Raising Effort

Initiatives or activities aimed at collecting funds for supporting a cause, project, or organization, often involving appeals to potential donors.