Multiple Choice
Which of the following is not true regarding the quick ratio?
A) If a company has more current assets than liquid assets,the current ratio will be larger than the quick ratio.
B) A high quick ratio suggests a high ability to pay current liabilities.
C) Liquid assets include cash and cash equivalents,short-term investments,and net accounts receivable.
D) A quick ratio greater than 1 implies a company could not pay all of its current liabilities.
Correct Answer:
Verified
Correct Answer:
Verified
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