The Rule of Thumb for the Quick Ratio Is 1:1

question 104

Multiple Choice

The rule of thumb for the quick ratio is 1:1.When would a quick ratio below this threshold not necessarily be a concern for a company?

• A)When inventories are high
• B)When accounts receivable balances are high
• C)When cash flows are steady and reliable
• D)None of these choices are correct

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Definitions:

Job Description

A formal account of an employee's responsibilities, duties, and the qualifications needed for a specific job.

Selection

The process of identifying and choosing individuals from a group of applicants to fill job vacancies in an organization.

Red-Circled

A term used to describe employees whose pay exceeds the maximum of their pay range, often due to changes in job structure or pay scale adjustment.

Pay Ranges

The scale of pay established for jobs of similar value or category within an organization, reflecting minimum and maximum pay rates.