The Most Important Difference Between the 'Quick' and 'Current' Ratios

question 94

Multiple Choice

The most important difference between the 'quick' and 'current' ratios in assessing an entity's short-term debt-paying ability is the inclusion of:

• A) cash at bank in one and not the other.
• B) inventory in one and not the other.
• C) current receivables in one and not the other.
• D) prepayments in one and not the other.

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Definitions:

Supervision Style

The approach or method by which a supervisor guides, motivates, and oversees the performance of their subordinates.

Challenging Tasks

Work assignments or projects that are complex, demanding, and require significant effort and skill to complete.

Action Planning And Follow-Up

The process of defining business strategies and steps, and ensuring their implementation and effectiveness are monitored.

Reality Check

An assessment to determine if one's perceptions or beliefs align with the actual situation.