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quick ratio that is much smaller than the current ratio reflects A

quick ratio that is much smaller than the current ratio reflects
A. a small portion of current assets is in inventory.
B. that the firm will have a high inventory turnover.
C. that the firm will have a high return on assets.
D. a large portion of current assets is in inventory.
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Answer #1
Look up the definitions of "quick ratio" and "current ratio". What is the difference?

The major difference in most companies will be the size of inventory as a current asset.

The quick ratio will always be smaller than the current ratio.

From that, you can just read off the answer.
answered by: Elona
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