Current Ratio and Quick Ratio Both Help Us Measure the Firm's

question 58

True/False

Current ratio and quick ratio both help us measure the firm's liquidity.The current ratio measures the relationship of a firm's current assets to its current liabilities,while the quick ratio subtracts inventory from other current assets.

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Definitions:

Sensorimotor Period

The first of the four stages of cognitive development in Piaget's theory, occurring from birth to age 2, characterized by the development of physical interaction with the environment.

Cognitive Development

The process concerning how thought, intelligence, and language processes change as people grow from infants into adults.

Piaget

A Swiss psychologist known for his theory of cognitive development which outlines how children's intellectual abilities evolve as they grow.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring between 7 and 11 years of age, during which children gain a better understanding of mental operations and can think logically about concrete events.