Solved

The Rule of Thumb for the Quick Ratio Is 1:1

Question 104

Multiple Choice

The rule of thumb for the quick ratio is 1:1.When would a quick ratio below this threshold not necessarily be a concern for a company?


A) When inventories are high
B) When accounts receivable balances are high
C) When cash flows are steady and reliable
D) None of these choices are correct

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions