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.

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Definitions:

Quantitative Research

A systematic investigation technique that focuses on quantifying the collection and analysis of data, often using statistical tools.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Statistical Tests

Quantitative methods used to determine whether hypotheses about data are supported or refuted.

Primary Research

Collection of original data or firsthand information through methods like surveys, interviews, or experiments.