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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Definitions:

Seminars

Educational meetings or conferences focused on particular topics where participants are involved in discussions or training.

Criticality

The importance or priority level of something, often assessed in terms of its potential impact or risk.

Communication Network

The structure through which information flows within an organization, including the formal and informal channels of communication.

Node

A point of intersection or connection within a network, system, or graph, often used in the context of data structures or network analysis.