Which of the Following Is Correct Regarding the Quick Ratio

question 4

Multiple Choice

Which of the following is correct regarding the quick ratio?

• A) The lower the quick ratio, the easier it is for the company to pay their current liabilities.
• B) Traditionally, most companies want a quick ratio of at least 2.0 to be safe.
• C) A quick ratio can never be too high.
• D) An acceptable quick ration depends on the industry the company is in.

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Definitions:

Communication Process Model

A theoretical framework describing how information is transmitted and received between communicators, encompassing elements such as sender, message, medium, receiver, and feedback.

Information

refers to data that is organized, structured, and given context in a way that makes it useful and meaningful.

Encoding-Decoding Process

The process in communication where the sender encodes a message into language and the receiver decodes it to understand its meaning.

Communication Channel

The medium through which a message is transmitted from sender to receiver, which can range from verbal and written to electronic methods.