Which of the following statements about liquidity ratios is true?
A) the lower the quick ratio relative to the current ratio, the safer a firm is in terms of liquidity.
B) the higher the current ratio, the more likely a firm is able to pay its short-term obligations.
C) the quick ratio is always between 0 and 1.
D) all the above statements are true.
Correct Answer:
Verified
Q73: If a firm has an after-tax profit
Q76: Which of the following statements is most
Q78: Which of the following statements is most
Q82: Which one of the following types of
Q114: Which item is not included in the
Q115: Management of current assets does not involve
Q127: Rental or lease payments are included in
Q137: If a firm's sales are $2,000,000, its
Q153: Which of the following ratios is not
Q159: The method of calculating return on assets
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents