Which of the Following Is True Regarding the Relationship of the Current

question 116

Multiple Choice

Which of the following is true regarding the relationship of the current ratio to the quick ratio?

• A)The current ratio is based on a more conservative measure of liquidity.
• B)Both focus on the relationship between part or all of the firm's current assets and all of its current liabilities.
• C)Both focus on the relationship between all of the firm's current assets and part or all of its current liabilities.
• D)For a company in the service industry,the current ratio and quick ratio will be significantly different.

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