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:

Chronic Respiratory Diseases

A group of long-term respiratory conditions that include diseases like asthma, chronic obstructive pulmonary disease (COPD), and cystic fibrosis.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or use insulin effectively.

Cultural Genocide

The deliberate destruction of the cultural heritage, practices, and identity of a particular group or society.

Truth and Reconciliation Commission

An official body tasked with discovering and revealing past wrongdoing by a government, in the hope of resolving conflict left over from the past.