What does a quick ratio of less than one typically indicate?
A)The company does not have enough quick assets to settle its current liabilities.
B)The company is unprofitable.
C)The company has a very high debt-to-equity ratio.
D)All of the answer choices are correct.

Question

Quizplus · Accepted Answer

A quick ratio of less than one typically indicates that the company does not have enough quick assets (such as cash, marketable securities, and accounts receivable) to settle its current liabilities (such as accounts payable and short-term debt) if they were all due immediately. This may raise concerns about the company's liquidity and ability to meet its financial obligations.

What Does a Quick Ratio of Less Than One Typically