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If the Quick Ratio Was 0

Question 85

Multiple Choice

If the quick ratio was 0.80 times in 2013, and in 2012 it was 1.10 times. What is the meaning of a change like this in the quick ratio?


A) The company's cash, receivables and inventories increased with current liabilities unchanged.
B) The company's cash and receivables decreased with currently liabilities unchanged.
C) The company's cash, receivables and marketable securities decreased with currently liabilities increasing.
D) The company's cash, receivable and marketable securities increased while current liabilities remained unchanged.

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