The Current Ratio and the Quick Ratio Differ Only Because

question 31

True/False

The current ratio and the quick ratio differ only because average inventories are subtracted in the numerator of the quick ratio.

---

Definitions:

Ascribed

A status or attribute assigned at birth or assumed involuntarily later in life, not based on individual merit or achievement.

Foot-In-The-Door Technique

A compliance method where persuading someone to agree to a small request increases the likelihood of agreement to a larger request later.

Solicitor

A legal professional qualified to offer advice and represent clients in legal matters, primarily in jurisdictions such as the UK, Ireland, and Australia.

Chain-Of-Command

The hierarchy within an organization that establishes who is in charge of whom and of whom permission must be asked.