Firms a and B Have the Same Current Ratio, 0

question 37

True/False

Firms A and B have the same current ratio, 0.75, the same amount of sales and cost of goods sold, and the same amount of current liabilities.However, Firm A has a higher inventory turnover ratio than B.Therefore, we can conclude that A's quick ratio must be smaller than B's.

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Definitions:

Quality of Hires

A metric used to evaluate how well new recruits meet the needs of the organization, their performance, and how they fit into the company culture.

Recruitment Function

The process within human resources aimed at attracting and selecting qualified candidates for job positions.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Rare Job Skills

Rare job skills are unique or uncommon abilities that are highly valued in the job market and often lead to competitive advantages for those who possess them.