The main difference between the current ratio and the quick ratio is that the quick ratio excludes :
A: cost of goods sold.
B: inventory.
C: sales.
A: cost of goods sold.
B: inventory.
C: sales.
举一反三
- 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
- All of the following statements are correct except ______. A: quick ratio is one of the current ratios B: quick ratio is used to measure the liquidity C: quick ratio is a more accurate measurement of liquidity of the current ratio D: quirk ratio is exact the same as the current ratio
- Which of the following ratios and rates that measure debt-paying ability focuses on the long-term position of a company? A: Quick ratio B: Inventory turnover C: Current ratio D: Debt ratio
- For the same firm, the current ratio is always larger than quick ratio.
- The difference between Cost of Goods Sold and Cost of Goods Available for Sale is: A: Beginning Inventory B: Ending Inventory C: Net Sales D: Net Purchases