Which of the Following Statements Regarding the Quick Ratio Is

question 76

Multiple Choice

Which of the following statements regarding the quick ratio is not true?

• 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:

Sinking

The process where land or objects gradually go down or submerge in water or another medium.

Ground

The solid surface of the Earth, or a reference point in electrical engineering for a return path for electric current.

Earth's Water

The total amount of water found on, under, and above the surface of the Earth, including oceans, ice caps, groundwater, lakes, and atmospheric water vapor.

Fresh Water

Water that has low concentrations of dissolved salts and other total dissolved solids, typically found in lakes, rivers, and groundwater.