Which of the Following Is True About the Quick Ratio

question 33

Multiple Choice

Which of the following is true about the quick ratio?

• A) The quick ratio is calculated by dividing the least liquid of current assets by current liabilities.
• B) Service firms 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 larger than current ratio for manufacturing firms or other industries that have a lot of inventory.

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Definitions:

Muscle-group Split

A workout strategy that involves training different muscle groups on different days to allow each group time to recover.

Bodybuilders

Individuals who engage in intensive physical training and dieting to build, sculpt, and maintain muscular physique.

DOMS

Delayed Onset Muscle Soreness, the pain and stiffness felt in muscles several hours to days after unaccustomed or strenuous exercise.

Delayed

Occurring at a later time than expected or scheduled, often resulting in inconvenience or adjustment of plans.