Which of the Following Statements Regarding the Quick Ratio Is

question 76

Multiple Choice

Which of the following statements regarding the quick ratio is not true?

• A)The quick ratio is also known as the acid-test ratio.
• B)The quick ratio ignores some current assets that are less liquid than others.
• C)The quick ratio is a conservative variation of the current ratio.
• D)The quick ratio equals quick assets divided by total liabilities.

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Definitions:

Time-Driven

An approach or methodology that is based on the amount of time required to perform activities, often used for planning, scheduling, or costing purposes.

Activity-Based Costing

A cost assignment approach that finds activities in an entity and assigns each activity's expenses to all goods and services based on actual use.

Customer Service

The support and assistance provided by a company to people who buy or use its products or services.

Time-Driven

A model or approach that bases analysis, costing, or scheduling on the amount of time required to perform tasks.