The Quick Ratio

question 216

Multiple Choice

The quick ratio

• A)is generally larger than the current ratio.
• B)decreases when a company's assets becomes more liquid.
• C)increases when a company has more cash sales than credit sales.
• D)is larger when a company's assets are more liquid.

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Definitions:

Metric Dimensioning

A system of measurement that uses the meter, liter, and gram as base units of length, volume, and weight, respectively.

Decimal Places

The number of digits to the right of the decimal point in a numerical value, indicating the precision of a measurement.

Limit Dimensioning

A dimensioning method where two limits of size are provided, giving the minimum and maximum allowable dimensions for manufacturing.

Maximum

The highest allowable limit for a dimension, value, or quantity.