Question: b . Benchmark ratios for the current and acid - test ( quick ) ratio are 1 . 4 9 and 1 . 2 2
b Benchmark ratios for the current and acidtest quick ratio are and respectively. What can you say about the liquidity of Raconteurs operations based on these two ratios?Select all the correct choices from below.
A
Based on its current ratio, Raconteurs Inc. is slightly more liquid than the peer group since its current ratio is higher.
B
Raconteursacidtest ratio indicates lower liquidity than its current ratio and Raconteursacidtest ratio shows lower liquidity when compared against the industry average.
C
Based on its current ratio, Raconteurs Inc. is slightly less liquid than the peer group since its current ratio is higher.
D
Raconteursacidtest ratio indicates higher liquidity than its current ratio and Raconteursacidtest ratio shows higher liquidity when compared against the industry average.
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