Creditors Would Prefer 1)a Quick Ratio of 1.2 to a Quick Ratio of Quick

question 53

Multiple Choice

Creditors would prefer
1) a quick ratio of 1.2 to a quick ratio of 0.8
2) a quick ratio of 0.8 to a quick ratio of 1.2
3) an average collection period of 46 to an average collection period of 35
4) an average collection period of 35 to an average collection period of 46

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4

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