A quick ratio ____ is often a concern for creditors and managers.
A) of more than one
B) of less than one
C) equal to one
D) of more than two

Question

Quizplus · Accepted Answer

A quick ratio of less than one indicates that a company may have difficulty meeting its short-term obligations with its current assets. This can be a concern for both creditors and managers, as it may indicate that the company is at risk of defaulting on its debts.

A Quick Ratio ____ Is Often a Concern for Creditors