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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