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:

Piaget

A Swiss psychologist known for his pioneering work in developmental psychology and his theory of cognitive development in children.

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development where infants explore their environment and learn through trial and error with repeated actions.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during infancy.

Variability Scheme

In psychology or research, it refers to a conceptual framework for understanding how variations or differences in data are structured or categorized.