Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A) The quick ratio is classified as an activity ratio.
• B) Current assets are expected to be converted into cash in less than 2 years.
• C) A firm's debt holders prefer a low quick ratio.
• D) Activity ratios go hand in hand with liquidity ratios
• E) Lower current ratios are always preferable.

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