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Author Question: Firms A and B have the same current ratio, 0.83; the same sales, $1,000,000; and the same current ... (Read 44 times)

allihubbard

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Question 1

Even though Firm A’s current ratio exceeds that of Firm B, Firm B’s quick ratio might exceed that of A. However, if A’s quick ratio exceeds B’s, A’s current ratio might be less than that of B.

◦ true
◦ false

Question 2

Firms A and B have the same current ratio, 0.83; the same sales, $1,000,000; and the same current liabilities, $600,000. However, Firm B has less inventories than A. Therefore, we can conclude that B’s quick ratio must be smaller than A’s.

◦ true
◦ false


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Marked as best answer by allihubbard on Aug 7, 2023

Preeti

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allihubbard

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Reply 2 on: Aug 7, 2023
Excellent


alvinum

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Reply 3 on: Yesterday
Gracias!

 

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