Which Formula Defines the Quick Ratio

question 36

Multiple Choice

Which formula defines the quick ratio?

• A) financial assets/current debt
• B) current debt/net sales
• C) net sales/current debt
• D) net profit/net sales

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Definitions:

Distribution Channels

Paths or routes through which goods or services pass from the manufacturer to the consumer or end-user.

Inventory Control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

Physical Distribution

All the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling.