Select the Incorrect Statement Regarding the Quick Ratio

question 28

Multiple Choice

Select the incorrect statement regarding the quick ratio:

• 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:

Sales Presentation

An opportunity to formally communicate the value proposition of a product or service to potential buyers, often using visual aids and demonstrations.

Prestige Suggestion

A marketing technique where a product or service is associated with high social status or exclusivity to attract customers.

Sales Presentation

A strategic, structured pitch or dialogue designed by a salesperson to highlight a product's or service's benefits and persuade a customer to make a purchase.

Proof Statements

Convincing or persuasive statements used in sales and marketing to validate the benefits or effectiveness of a product or service.