The Quick Ratio Differs from the Current Ratio in That

question 96

Multiple Choice

The quick ratio differs from the current ratio in that it

• A) represents the amount of cash on hand instead of the amount of working capital.
• B) is a stricter test of a company's ability to pay its current debts as they are due.
• C) excludes inventories and accounts receivable from the numerator of the fraction because of obsolescence and possible default on payment.
• D) is more difficult to calculate.

Comprehend the basic principles of computing, such as Moore's law and processing functions.

Recognize the importance and impact of input and output technologies in computing systems.

Differentiate between various computing devices based on their functions and capabilities.

Understand the significance of hardware in the structure and functionality of computer systems.

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