A Firm Has a Lower Quick (Or Acid Test) Ratio

Multiple Choice

A firm has a lower quick (or acid test) ratio than the industry average, which implies

A) the firm has a lower P/E ratio than other firms in the industry.
B) the firm is less likely to avoid insolvency in the short run than other firms in the industry.
C) the firm may be more profitable than other firms in the industry.
D) the firm has a lower P/E ratio than other firms in the industry, and the firm is less likely to avoid insolvency in the short run than other firms in the industry.
E) the firm is less likely to avoid insolvency in the short run than other firms in the industry, and the firm may be more profitable than other firms in the industry.