If a company has a quick ratio of 1.0 and a current ratio of 2.0, it is more likely that A. the value of current liabilities is equal to the value of inventory. B. the value of current assets is equal to the value of inventory. C. the value of current assets is equal to the value of current liabilities. D. the value of current liabilities is more than the value of current assets.
If a company has a quick ratio of 1.0 and a current ratio of 2.0, it is more likely that A. the value of current liabilities is equal to the value of inventory. B. the value of current assets is equal to the value of inventory. C. the value of current assets is equal to the value of current liabilities. D. the value of current liabilities is more than the value of current assets.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...
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If a company has a quick ratio of 1.0 and a current ratio of 2.0, it is more likely that
A. the value of current liabilities is equal to the value of inventory.
B. the value of current assets is equal to the value of inventory.
C. the value of current assets is equal to the value of current liabilities.
D. the value of current liabilities is more than the value of current assets.
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