Which of the Following Is the Most Desirable Quick Ratio

question 199

Multiple Choice

Which of the following is the most desirable quick ratio?

• A) 2.20
• B) 1.80
• C) 1.95
• D) 1.50

---

Definitions:

Financial Manager

An individual responsible for overseeing and managing a company's financial activities and strategies.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers, indicative of the company's payment policies and cash flow management.

Quarterly Sales

The total revenue a company generates from its business activities during a specific three-month period of the fiscal year.