Select the Incorrect Statement Regarding the Quick Ratio

question 124

Multiple Choice

Select the incorrect statement regarding the quick ratio:

• A)The quick ratio equals quick assets divided by total liabilities.
• B)The quick ratio is also known as the acid-test ratio.
• C)The quick ratio is a conservative variation of the current ratio.
• D)The quick ratio ignores some current assets that are less liquid than others.

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Definitions:

Nurture

The process of caring for and encouraging the growth or development of someone or something, often contrasted with innate or genetic factors.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, or vice versa.

Food Intake

The consumption of nutrition and calories through eating and drinking; an essential aspect of maintaining energy and health.

Hunger

The physical sensation or condition of wanting or needing to eat food.