Two Companies Have an Identical Amount of Current Assets and Current

Multiple Choice

Two companies have an identical amount of current assets and current liabilities.Melia Inc.has 40% of its current assets invested in inventory, whereas Tesoro Corp.has 30% of its current assets invested in inventory.Which of the following statements is true?

A) Melia will have the higher quick ratio.
B) Melia will have the higher current ratio.
C) The companies are equally liquid because their current ratios are the same.
D) Melia is less liquid than Tesoro.