Multiple Choice
Creditors would prefer
1. a quick ratio of 1.2 to a quick ratio of 0.8
2. a quick ratio of 0.8 to a quick ratio of 1.2
3. days sales outstanding of 46 to a days sales outstanding of 35
4. days sales outstanding of 35 to a days sales outstanding of 46
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Which of the following has no impact
Q2: Days sales outstanding (average collection period or
Q3: Stock dividends increase<br>A)the number of shares outstanding<br>B)the
Q4: Firms with too much debt are undercapitalized.
Q6: If the firm's current ratio exceeds 1:1
Q8: The current ratio and the quick ratio
Q9: The greater the numerical value of the
Q10: The quick ratio is a better measure
Q11: When a firm makes a profitable sale,
Q22: Preferred stock generally pays<br>A)a variable dividend<br>B)a fixed