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 small events.

Question

Quizplus · Accepted Answer

Companies selling more expensive merchandise tend to have higher inventory dollar levels and less frequent sales, and therefore have lower inventory turnover ratios.

Which of the Following Is False