• 2021-04-14
    Magenta Ltd has a current ratio of 1.5, a quick ratio of 0.4 and a positive cash balance. If it purchases inventory on credit, what isthe effect on these ratios?? Current ratio increase and;Quick;ratio increase|Current ratio increase and;Quick;ratio decrease|Current ratio decrease and;Quick;ratio increase|Current ratio decrease and;Quick;ratio decrease
  • Current ratio decrease and;Quick;ratio decrease

    内容

    • 0

      For the same firm, the current ratio is always larger than quick ratio.

    • 1

      The current ratio provides a more conservative measure of aggregate liquidity than quick ratio.( )

    • 2

      A company's quick assets are $147,000 and its current liabilities are $143,000. This company's acid-test ratio is 1.03.

    • 3

      Among the following ratios, which is used for efficiency analysis? A: quick ratio B: accounts receivable turnover C: debt-to-equity ratio D: net profit ratio

    • 4

      Quick ratio is used to measure .