If a Company Has a Healthy Current Ratio but a Significantly

question 46

Multiple Choice

If a company has a healthy current ratio but a significantly lower quick ratio,then you can assume that:

• A) the cost of goods sold represents more than half of sales.
• B) current liabilities exceed current assets.
• C) the firm sells only on a cash basis.
• D) inventory represents a large portion of the firm's current assets.

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Definitions:

Self-Efficacy Theory

A psychological concept which posits that individuals' belief in their ability to perform tasks influences their actions and successes.

Motivated

Having a strong willingness or enthusiasm to do something.

Goal Specificity

The clarity and precision with which a goal is defined, impacting its measurability and the ability to achieve it.

Goal Difficulty

The extent to which a goal is challenging and requires effort to achieve, often influencing motivation and performance.