Because It Includes Only Cash and Short-Term Investments in the Numerator

question 80

True/False

Because it includes only cash and short-term investments in the numerator, the current ratio is a more stringent measure of a firm's ability to pay current liabilities than the quick ratio.

---

Definitions:

Tachycardia

A condition characterized by an abnormally fast heart rate, typically exceeding 100 beats per minute in adults.

SpO2 Readings

Measurements of the oxygen saturation level in the blood, typically done using a pulse oximeter to assess respiratory function.

Fingernail Polish

A cosmetic product applied to the fingernails to color, decorate, protect, and enhance their appearance.

Pulsatile Area

A region on the body where the pulse is easily felt, such as the wrist or neck, indicating heartbeat and blood flow.