For a venture with inventories, the quick ratio will always be greater than the current ratio.

Name: For a venture with inventories, the quick ratio will always be greater than the current ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The quick ratio only considers the most liquid assets, such as cash and accounts receivable, while the current ratio includes all current assets including inventories. Therefore, if a venture has a significant amount of inventories, the quick ratio will be lower than the current ratio.

For a Venture with Inventories, the Quick Ratio Will Always