A Firm's Quick Ratio of

question 103

Multiple Choice

A firm's quick ratio of .49 suggests the firm:

• A) has a low level of current liabilities.
• B) has been overstating the value of its inventory.
• C) faces a potentially serious liquidity crisis.
• D)should reduce its holdings of cash and/or marketable securities.

---

Definitions:

Epidermis

The outermost layer of skin, serving as the body's primary barrier against environmental damage.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and connective tissue.

Herpes Zoster

A medical condition characterized by an eruption of a group of vesicles on one side of the body following a nerve root.

Melanoma

A type of skin cancer that develops from the pigment-containing cells known as melanocytes.