Which of the following is false?
A)The major difference between the quick and current ratios is inventory.
B)Current liabilities are the denominator in the cash,quick,and current ratios.
C)Companies that sell expensive merchandise tend to have high inventory turnover ratios.
D)Some analysts do not use the cash ratio because it is very sensitive to individual events.

Question

Quizplus · Accepted Answer

Companies that sell expensive merchandise tend to have low inventory turnover ratios because their products take longer to sell compared to cheaper, fast-moving goods.

Which of the Following Is False