Use the following statements to answer this question:
I.The quick ratio is more conservative than the current ratio because it covers a smaller period of time.
II.The cost of goods sold figure in the inventory turnover ratio is not always reliable because of accounting differences used in measuring it.

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Quizplus · Accepted Answer

The quick ratio is more conservative than the current ratio because it excludes inventory, not because it covers a smaller period of time. The cost of goods sold figure in the inventory turnover ratio can indeed be unreliable due to different accounting methods.

Use the Following Statements to Answer This Question