A Quick Ratio That Is Much Smaller Than the Current

question 125

Multiple Choice

A quick ratio that is much smaller than the current ratio reflects

• A) a small portion of current assets is in inventory.
• B) a large portion of current assets is in inventory.
• C) that the firm will have a high inventory turnover.
• D) that the firm will have a high return on assets.

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Definitions:

Problem Avoider

An individual who tends to ignore or evade situations that appear to be problematic or challenging.

Quality Control

A series of activities and procedures intended to ensure that products or services meet specified requirements and are dependable.

Performance Threat

Performance Threat refers to the potential risk or perceived danger of failing to meet performance standards, which can negatively impact an individual's motivation and productivity.

Problem Seeker

An individual or an approach focused on identifying issues before they become significant problems, enabling proactive solutions and improvements.