The Quick Ratio Is a Better Measure of Liquidity Than

question 92

Multiple Choice

The quick ratio is a better measure of liquidity than the current ratio if the firm has current assets composed primarily of:

• A)cash.
• B)work in process inventory.
• C)marketable securities.
• D)accruals.

---

Definitions:

Computer System

An electronic device capable of executing a series of instructions to process data.

Virus

A biological infectious agent that replicates only inside the living cells of an organism, potentially causing disease.

Dormant

A state of inactivity or minimal activity, often used to describe a business that is not currently active but still exists legally.

DVD Drives

A device that reads and, in some cases, writes data to a DVD disc, used in computers, entertainment systems, and some recording and playback hardware.