Which of the Following Is the Most Desirable Quick Ratio

question 78

Multiple Choice

Which of the following is the most desirable quick ratio?

• A) 1.20
• B) 1.00
• C) 0.95
• D) 0.50

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Definitions:

Investors

Individuals or entities that allocate capital with the expectation of achieving a future financial return.

Securities

Assets which embody either ownership in a stock of a company available to the public, a lending relationship with a government or corporate entity through bonds, or claims to ownership via options.

Warrant Holder

An individual or entity that owns a warrant, giving them the right, but not the obligation, to buy a company's stock at a specified price before the warrant expires.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.