The Quick Ratio Is a Better Measure of Liquidity Than

question 7

Multiple Choice

The quick ratio is a better measure of liquidity than the current ratio if the firm has current assets composed primarily of

• A)cash.
• B)inventory.
• C)marketable securities.
• D)accruals.

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Definitions:

Morphemes

Morphemes are the smallest grammatical units in a language that have meaning or grammatical function.

Phrases

Groups of words that function as a unit within a sentence but do not contain both a subject and a verb.

Units of Sound

The basic components of speech, such as phonemes, which are the smallest units of sound that can differentiate meaning.

Verbs

A class of words that denote action, occurrence, or a state of being.