Firms a and B Have the Same Current Ratio,0

question 62

True/False

Firms A and B have the same current ratio,0.75,the same amount of sales,and the same amount of current liabilities.However,Firm A has a higher inventory turnover ratio than B.Therefore,we can conclude that A's quick ratio must be smaller than B's.

---

Definitions:

Controlling Account

A general ledger account that summarizes the balances of a set of subsidiary accounts, facilitating overall management.