Multiple Choice
Which of the following is true about quick ratio?
A) It is computed as quick assets multiplied by current liabilities.
B) It includes cash, inventory, and short-term investments.
C) If it is less than 1.0, it raises liquidity concerns for creditors.
D) It is a suitable measure to derive the profitability of the company.
Correct Answer:
Verified
Correct Answer:
Verified
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