Analysts Use the Quick Ratio (Also Known as the Acid

question 23

Multiple Choice

Analysts use the quick ratio (also known as the acid test ratio) and the current ratio.The use of both ratios has become common because

• A)the quick ratio is much easier to compute than the current ratio
• B)interpretation of the current ratio is more difficult because of its complexity
• C)the acid test is a more severe test of a company's liquidity
• D)the acid test a better measure of management's effectiveness

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Definitions:

Data Mining

Examining large data sets for patterns.

Data Set

A set of data points.

Data.gov

An online portal that provides access to a wide range of datasets published by the United States government.

.sav File

A file extension used by SPSS (Statistical Package for the Social Sciences) to store data sets, including variables, cases, and their values.