All but One of the Following Is True About Quick

question 2

Multiple Choice

All but one of the following is true about quick ratios.

• A) The quick ratio is calculated by dividing the most liquid of current assets by current liabilities.
• B) Service companies that tend not to carry too much inventory will see significantly higher quick ratios than current ratios.
• C) Inventory, being not very liquid, is subtracted from total current assets to determine the most liquid assets.
• D) Quick ratios will tend to be much smaller than current ratio for manufacturing companies or other industries that have a lot of inventory.

---

Definitions:

σ

Denotes the standard deviation in statistics, a measure of the dispersion or variability of a set of values.

Null Hypotheses

A statement or hypothesis set for statistical testing, positing that there is no significant difference or effect.

Alternative Hypotheses

In hypothesis testing, it is the statement that suggests a possible relationship between variables or a difference in groups, contrasting the null hypothesis.

Heart Rate

The number of heartbeats per unit of time, usually expressed in beats per minute (bpm).