Firms a and B Have the Same Current Ratio, 0

question 37

True/False

Firms A and B have the same current ratio, 0.75, the same amount of sales and cost of goods sold, and the same amount of current liabilities.However, Firm A has a higher inventory turnover ratio than B.Therefore, we can conclude that A's quick ratio must be smaller than B's.

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Definitions:

Mass Spectrum

A chart or graph that displays the distribution of ions by mass in a sample, useful for identifying substances and determining their structure.

2-Methylpentan-3-one

An organic compound characterized by a ketone functional group placed on the third carbon of a methylpentane backbone.

1-Propanol

An alcohol with the formula C3H7OH, used as a solvent and an intermediate in the production of other chemicals.

Sodium Acetylide

A chemical compound formed by the reaction of acetylene with sodium metal, used in organic synthesis.