Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A)Current assets consist of cash,accounts receivable,inventory,and net plant,property,and equipment.
• B)The quick ratio is a more restrictive measure of a firm's liquidity than the current ratio.
• C)For the average firm,inventory is considered to be more "liquid" than accounts receivable.
• D)A successful firm's current liabilities should always be greater than its current assets.

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Definitions:

Golgi Stacks

A structure within the cell composed of a series of flattened membrane sacs involved in the modification, sorting, and packaging of proteins.

Surface Area

The total area of the external surface of a three-dimensional object.

Spherical Shape

Pertains to objects or entities having the shape of a sphere, which is perfectly round in three dimensions.

Peroxisomes

Organelles found in virtually all eukaryotic cells that break down fatty acids and detoxify certain chemicals.