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If a Company Has a Quick Ratio of 1

Question 51

Multiple Choice

If a company has a quick ratio of 1.0 and a current ratio of 2.0, then:


A) the value of current assets is equal to the value of inventory.
B) the value of current assets is equal to the value of current liabilities.
C) the value of current liabilities is more than the value of current assets.
D) the value of current liabilities is equal to the value of inventory.
E) the value of inventory is more than the value of current assets.

Correct Answer:

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