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:

Mechanism

Describes the step-by-step process by which reactants are converted into products in a chemical reaction.

Grignard Reagent

An organomagnesium compound used in chemistry for creating new carbon-carbon bonds.

Alkyl Halides

Organic compounds containing a halogen atom(X) bonded to an sp3-hybridized carbon atom, used in many chemical reactions and synthesis.

Grignard Reagent

An organomagnesium compound used in chemical reactions to form carbon-carbon bonds, instrumental in organic synthesis.