A Quick Ratio That Is About Equal to the Current

question 102

Multiple Choice

A quick ratio that is about equal to the current ratio indicates that

• A)inventories represent a large portion of current assets.
• B)the company has a low inventory turnover.
• C)inventories represent a small portion of current assets.
• D)the company has a high inventory turnover.

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Definitions:

Openness to Experience

A personality trait that entails a willingness to try new things, embrace new ideas, and be imaginative and creative.

Neuroticism

A characteristic of personality defined by feelings of unease, instability in emotions, fretfulness, a tendency to worry, and experiences of fear.

Behavioral Traits

Characteristics or patterns of behavior that are observable and often considered to be inherent or acquired through interaction with the environment.

Consistency

The quality of always behaving in the same way or having the same attitudes, standards, and beliefs, leading to reliability and predictability.