Question: The quick ratio improves upon the current ratio by a.using more up-to-date information. b.simplifying the calculation. c.recognizing that inventory is the least liquid current asset.

  1. The quick ratio improves upon the current ratio by

a.using more up-to-date information.

b.simplifying the calculation.

c.recognizing that inventory is the least liquid current asset.

d.recognizing that inventory is the current asset that is easiest to value.

  1. In cross-sectional analysis, a firm's financial ratios are

a.judged against the performance of firms in the same industry.

b.compared with the firm's ratios from the most recent period.

c.compared with ratios from all firms.

d.compared with a general standard.

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