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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.