If the Current Ratio of a company equals 2.1, the Quick ratio will always be lower than 2.1. Assume that the company has inventory and prepaid expenses.)

Name: If the Current Ratio of a company equals 2.1, the Quick ratio will always be lower than 2.1. Assume that the company has inventory and prepaid expenses.)
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Quizplus · Accepted Answer

The Quick Ratio excludes inventory and prepaid expenses from current assets, making it lower than the Current Ratio, which includes all current assets.

If the Current Ratio of a Company Equals 2