Which of the Following Statement Is Correct Regarding the Quick

question 16

Multiple Choice

Which of the following statement is correct regarding the quick ratio?

• A)The numerator for the quick ratio is current assets minus inventory minus accounts receivable.
• B)The numerator for the quick ratio is current assets.
• C)The quick ratio is also called the working capital ratio.
• D)The quick ratio is a more conservative variation of the current ratio.

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