A Company with a Current Ratio Higher Than Industry Average

question 128

True/False

A company with a current ratio higher than industry average must also have a quick ratio higher than industry average because both ratios measure liquidity.

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Definitions:

Consumers

People or collectives who buy products and services for their own consumption.

Price Floor

A minimum price buyers are required to pay for a good or service; a form of price control.

Excise Tax

A tax on the sale or consumption of specific goods or services, such as tobacco, alcohol, and gasoline, often levied by the government at the point of manufacture or sale.

SUVs

SUVs, or Sport Utility Vehicles, are a type of vehicle that combines elements of road-going passenger cars with features from off-road vehicles, like higher ground clearance.