Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A)Current assets consist of cash,accounts receivable,inventory,and net plant,property,and equipment.
• B)The quick ratio is a more restrictive measure of a firm's liquidity than the current ratio.
• C)For the average firm,inventory is considered to be more "liquid" than accounts receivable.
• D)A successful firm's current liabilities should always be greater than its current assets.

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Definitions:

Internal Source

An internal source refers to information, resources, or candidates originating from within an organization, as opposed to those found externally.

Employee Referrals

A hiring strategy where current employees recommend potential candidates for open positions within the organization, oftentimes rewarded with bonuses or other incentives.

Direct Applicants

People who apply for a vacancy without prompting from the organization.

Recruitment Sources

Different avenues where employers can locate prospective employees, such as internet job sites, hiring firms, and social networking sites.