If a Company Has a Quick Ratio of 1

question 78

Multiple Choice

If a company has a quick ratio of 1.0 and a current ratio of 2.0, then:

• A)the value of current assets is equal to the value of inventory.
• B)the value of current assets is equal to the value of current liabilities.
• C)the value of current liabilities is more than the value of current assets.
• D)the value of current liabilities is equal to the value of inventory.
• E)the value of inventory is more than the value of current assets.

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