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.

Understand the significance of water in biological systems and its unique properties that support life.

Comprehend the physical and chemical properties of water that make it essential for living organisms, including its states, heat properties, and role as a solvent.

Recognize the importance of water's high heat capacity and its effects on aquatic life and ecosystems.

Understand the concept of pH and the behavior of acids and bases in water, with a focus on ionization.

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Definitions:

Trial Balance

A financial document showing the amounts held in each of a company's main accounting records at a certain date.

Chart of Accounts

A systematic list of all ledger account titles and numbers used by a company, organized to support the compilation of financial statements.

Miscellaneous Expense

Small and infrequent costs that do not fit into other specific expense categories in a company's financial statements.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.