Given That a Company Has a Healthy Current Ratio but a Significantly

question 99

Multiple Choice

Given that a company has a healthy current ratio but a significantly lower quick ratio,which of the following may not be true?

• A) The company may have an inventory problem.
• B) The numerator of the quick ratio includes cash, marketable securities, and receivables.
• C) The quick ratio is always smaller than the current ratio.
• D) The company is rich in cash and receivables.

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