The Current and Quick Ratios Have Two Limitations

question 4

Multiple Choice

The current and quick ratios have two limitations.These ratios

• A)emphasize the ineffectiveness of analysts' calculations and focus on liquid assets at a point in time instead of a period of time.
• B)focus on cash instead of working capital,and they represent a point in time instead of covering a period of time.
• C)focus on working capital instead of cash,and they represent a point in time instead of covering a period of time.
• D)are ignored by most creditors and focus on working capital instead of cash.

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