Which of the Following Statements Regarding the Quick Ratio Is

question 98

Multiple Choice

Which of the following statements regarding the quick ratio is incorrect?

• A) The quick ratio is also known as the acid-test ratio.
• B) The quick ratio ignores some current assets that are less liquid than others.
• C) The quick ratio is a conservative variation of the current ratio.
• D) The quick ratio equals quick assets divided by total liabilities.

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Definitions:

Sensorimotor Development

The stage of cognitive development, according to Piaget, from birth to about two years, where infants learn through interacting with their environment using their senses and motor actions.

Goal-Directed Behavior

Actions taken with the intent of achieving a specific outcome or target.

Visually Tracks

The ability to follow the movement of objects with one's eyes, which is an important developmental milestone in infants.

Primary Circular Reaction

A developmental phenomenon observed in infants, involving repetition of actions that serve no purpose other than the pleasure derived from the act itself.