A Firm Has a Current Ratio of 1

question 42

Multiple Choice

A firm has a current ratio of 1.4 and a quick ratio of 0.9.Given this,you know for certain that the firm:

• A)pays cash for its inventory.
• B)has more than half its current assets invested in inventory.
• C)has more cash than inventory.
• D)has more current liabilities than it does current assets.
• E)has positive net working capital.

---

Definitions:

Radioisotope

A radioactive isotope of an element, used in various scientific applications including medicine and radiometric dating.

Stable Isotope

A non-radioactive form of an element’s isotope, which does not change or decay over time.

Radiation

The emission or transmission of energy in the form of waves or particles through space or through a material medium.

Protons

Positively charged particles found within an atom's nucleus, contributing to the atom's mass and defining the element.