The Quick Ratio Provides

question 58

Multiple Choice

The quick ratio provides

• A)a better indicator than the current ratio of potential growth.
• B)a ratio of revenues to net income.
• C)a more restrictive view of a company's liquidity compared to the current ratio.
• D)more incentive for a company to invest in non-liquid assets.
• E)a company with liquidity levels compared to investment levels.

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Definitions:

Market Pricing

An economic principle that describes how prices are determined in a market-based on supply and demand.

Collectivistic Culture

A culture in which the emphasis is on interdependence, cooperation, and the welfare of the group over that of the individual.

Individualistic Culture

A culture in which the emphasis is on individual initiative, achievement, and creativity over maintenance of social cohesion.

Social Role

A set of expectations, norms, and behaviors that a society attaches to a particular status or position within a social structure.