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Which of the Following Statements Regarding the Quick Ratio Is

Question 98

Multiple Choice

Which of the following statements regarding the quick ratio is incorrect?


A) The quick ratio is also known as the acid-test ratio.
B) The quick ratio ignores some current assets that are less liquid than others.
C) The quick ratio is a conservative variation of the current ratio.
D) The quick ratio equals quick assets divided by total liabilities.

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