The Quick Ratio

question 158

Multiple Choice

The quick ratio

• A) is used to quickly determine a company's leverage and long-term debt-paying ability.
• B) relates cash, marketable securities, and net receivables to current liabilities.
• C) is calculated by taking one item from the income statement and one item from the balance sheet.
• D) is the same as the current ratio except it is rounded to the nearest whole percent.

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often tested against an alternative hypothesis in statistical analysis.

Researcher Interest

The particular area of study or question that a researcher is focused on exploring in their work.

Alternative Hypothesis

In hypothesis testing, it is the hypothesis that suggests there is a statistically significant effect or difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as the default assumption to be tested against an alternative hypothesis.