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.

---

Definitions:

Sum of Squares

The sum of the squared deviations of each data point from its mean, a measure used in statistical analysis to quantify variability within a dataset.

P-value

A statistical measure that helps scientists determine the significance of their research results, reflecting the strength of evidence against the null hypothesis.

Significance Level

The probability of rejecting a true null hypothesis in hypothesis testing.

Interaction

The mutual or reciprocal action or influence between entities or variables in a study.