A Quick Ratio That Is Much Smaller Than the Current

question 125

Multiple Choice

A quick ratio that is much smaller than the current ratio reflects

• A) a small portion of current assets is in inventory.
• B) a large portion of current assets is in inventory.
• C) that the firm will have a high inventory turnover.
• D) that the firm will have a high return on assets.

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Definitions:

Geologists

Scientists who study the Earth, its materials, and the processes affecting it over time.

Natural Hazards

Phenomena that occur in nature like earthquakes, floods, and hurricanes, which can pose risks to human health, safety, and property.

Observation

The act of monitoring, recording, or noting phenomena using the senses or scientific instruments.

Specific Measurements

Specific measurements refer to precise quantitative assessments made for particular variables or parameters in a study or observation.