Question: irtual s current ratio is and its quick ratio is , whereas Brilliant s current ratio is , and its quick ratio is . Which
irtuals current ratio isand its quick ratio is whereas Brilliants current ratio is and its quick ratio is
Which of the following statements are true?Check all that apply.
As compared to Virtual Industries, Brilliant Industries has lesser liquidity and relatively greater reliance on outside cash flow to finance its shortterm obligations.
Brilliant Industries has a better ability to meet its shortterm liabilities than Virtual Industries
If a companys current liabilities are increasing faster than its current assets, the companys liquidity position is weakening.
If a company has a quick ratio of less than but a current ratio of more than and if the difference between the two ratios is large, it would mean that the company depends heavily on the sale of its inventory to meet its shortterm obligations.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
