题目
题目

Business Finance Exam 1 Practice

单项选择题

4.4: A company’s quick ratio is 1.2. What does this indicate about its liquidity?

选项
A.It cannot meet short-term obligations
B.It has sufficient liquid assets to cover current liabilities
C.It relies heavily on inventory
D.It has no debt
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标准答案
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思路分析
To assess what a quick ratio of 1.2 implies about liquidity, we evaluate each statement in light of what the quick ratio measures. Option 1: 'It cannot meet short-term obligations' This is not accurate because the quick ratio excludes inventory and compares liquid assets to current liabilities. A ratio ......Login to view full explanation

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CANADIAN TIRE- Part 1 of 11 Use two decimal points. Do not add percentage (%), or times (X) with the number. Calculate Quick Ratio for 2020. 

Using the Financial Statements above, what is the quick ratio for year 20x0? XYZ Corporation Balance Sheet Balance Sheet (in $millions) Assets 20x0 20x1 Current assets Cash 350 425 Accounts receivable 568 612 Inventory 820 834 Total CA 1,738 1,871 Fixed assets PP&E 6,124 6,582 Accumulated dep. 868 1,214 Net PP&E 5,256 5,368 Total Assets 6,994 7,239 Liabilities 20x0 20x1 Current liabilities Accounts payable 412 414 Notes payable 511 498 Total CL 923 912 Long-term debt 3,215 3,321 Equity Common stock 1,816 1,906 Retained earnings 1,040 1,100 Total Liability and equity 6,994 7,239   XYZ Corporation Income Statement 20x1 Income Statement (in $Millions) Sales 4,673 Cost of goods sold (1,985) Operating expense (849) Depreciation (412) Earnings before interest and taxes 1,427 Interest expense (580) Earnings before taxes 847 Taxes (250) Net income 597  

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A firm has a higher quick (or acid test) ratio than the industry average, which implies:

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