Which of the following is true regarding the relationship of the current ratio to the quick ratio?
a. The current ratio is based on a more conservative measure of liquidity.
b. Both focus on the relationship between part or all of the firm's current assets and all of its current liabilities.
c. Both focus on the relationship between all of the firm's current assets and part or all of its current liabilities.
d. For a company in the service industry, the current ratio and quick ratio will be significantly different.
b
You might also like to view...
One of the useful things to remember about HR metrics and analytics is “Don’t Do Metrics.” This advice means
a. that organizations without an integrated computing infrastructure should not do metrics b. not to focus on small, narrowly targeted metrics c. developing HR metrics should be focused on increased organizational effectiveness d. both push and pull communications should be used
Chapter 11 of the Bankruptcy Code deals with the ________ form of bankruptcy.
A. reorganization B. liquidation C. rehabilitation D. composition
Jennifer owns a greeting card store where she also sells women's purses, crocs for the whole family, jibbitz, cell phone skins, Sandy Lion stickers, Yankee candles, Godiva chocolates, Precious Memories figurines, beaded jewelry, and stuffed animals. Jennifer uses multibrand merchandising.
Answer the following statement true (T) or false (F)
The process of obtaining ________ values is referred to as discounting
A) present B) future C) current D) inflated