Multiple Choice
A quick ratio that is much smaller than the current ratio indicates that
A) inventories represent a large portion of current assets.
B) the company has a low inventory turnover.
C) inventories represent a small portion of current assets.
D) the company has a high inventory turnover.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: In a common-size balance sheet,total assets are
Q26: Accounting methods may be a source of
Q35: A limitation of using industry norms in
Q100: Inventory turnover is a measure of liquidity
Q105: In a common-size income statement for a
Q131: Form 10-Q refers to the annual report
Q153: Both profit margin and asset turnover affect
Q154: A company with $50,000 in current assets,
Q160: Return on assets is most closely related
Q186: Financial statement analysis can be both past-