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:

Diffusion of Innovation

Diffusion of innovation is the process by which a new idea, product, or behavior is accepted and adopted by the market or a community over time.

Diffusion of Innovation

A theory that describes how, why, and at what rate new ideas and technology spread through cultures and societies, from early adopters to more widespread acceptance.

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through a population, influencing the adoption rate and market saturation.

Early Adopters

A group within a consumer base that is among the first to acquire and use a new product or technology, often influencing others.