The Current and Quick Ratios Have Two Limitations

question 4

Multiple Choice

The current and quick ratios have two limitations.These ratios

• A)emphasize the ineffectiveness of analysts' calculations and focus on liquid assets at a point in time instead of a period of time.
• B)focus on cash instead of working capital,and they represent a point in time instead of covering a period of time.
• C)focus on working capital instead of cash,and they represent a point in time instead of covering a period of time.
• D)are ignored by most creditors and focus on working capital instead of cash.

---

Definitions:

Inner Feelings

An individual's personal, emotional experiences that are not always visible to others, including emotions, sensations, and subjective perceptions.

Values

Core beliefs or standards that guide behavior and decision-making, reflecting what is important to an individual or organization.

Handling Difficult Challenges

The process or ability to effectively manage, address, or overcome complicated or demanding situations.

Leadership Development

The process of enhancing an individual's ability to guide, influence, and inspire others towards achieving mutual goals.