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

---

Definitions:

Political Action Committee (PAC)

An organization that collects political donations from its members and uses those funds to support or oppose candidates, legislation, or political initiatives.

Federal Office

A position of responsibility or authority within the federal government of a country, typically in the executive, legislative, or judicial branches.

Same-Sex Marriage

The legal or socially recognized marriage between two people of the same sex.

Litigation Strategy

A litigation strategy is a planned approach to legal proceedings, determined by attorneys to achieve the best outcome in a lawsuit.