A Company's Quick Ratio

question 28

Multiple Choice

A company's quick ratio:

• A) can never be larger than its current ratio at the same date.
• B) indicates the length of time the company takes to pay its short-term creditors.
• C) indicates how quickly the company converts its current assets to cash.
• D) is computed by dividing current assets by current liabilities, excluding accounts payable for inventory purchases.

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Definitions:

Sublimation

A defense mechanism proposed by psychoanalytic theory, where socially unacceptable impulses or ideals are transformed into socially acceptable actions or behaviors, often resulting in a long-term conversion of the initial impulse.

Hostile Woman

A term that lacks specificity without context but could refer to a woman displaying aggression or hostility.

Overdeveloped

Describing something that has been developed excessively beyond what is normal or necessary.

Superego

According to psychoanalytic theory, it's the section of an individual's mind functioning as a self-evaluating moral center, mirroring the societal norms absorbed from parents and educators.