Which of the Following Statement Is Correct Regarding the Quick

question 16

Multiple Choice

Which of the following statement is correct regarding the quick ratio?

• A)The numerator for the quick ratio is current assets minus inventory minus accounts receivable.
• B)The numerator for the quick ratio is current assets.
• C)The quick ratio is also called the working capital ratio.
• D)The quick ratio is a more conservative variation of the current ratio.

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Definitions:

Formula

A mathematical or symbolic representation of relationships among entities or for solving a problem.

Ionic Compound

An ionic bonded substance formed from ions interconnected by electrostatic attractions.

Cu2+

A positively charged ion of copper, formed when copper loses two electrons.

Nitrogen

A chemical element with symbol N and atomic number 7, it is a non-metallic gas that makes up 78% of the Earth's atmosphere by volume.