Short-Term Creditors Are Most Likely to Use the Quick Ratio

question 27

Multiple Choice

Short-term creditors are most likely to use the quick ratio instead of the current ratio in evaluating the solvency of a company with large,slow-moving:

• A)Plant and equipment.
• B)Receivables.
• C)Inventories.
• D)Employees.

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Definitions:

Hierarchical Structure

An organizational structure where entities are ranked one above the other according to authority or status.

Directories

Organizational units in a file system that contains files and possibly other directories, used to structure and store computer files systematically.

C:\ Drive

The default primary partition and drive letter assignment for the hard drive in many Windows operating systems.

Directory

A hierarchical structure that include files, folders, and drives used to create a more organized and efficient computer.