Quiz Ch 04 – T/F Interpreting Ratios: Current and Inventory Turnover

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Firms A and B share identical current ratios of 0.75, sales, and current liabilities. Yet, Firm A holds a superior inventory turnover ratio to B. Consequently, we can deduce that A's quick ratio must be lower than B's.

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  • Search Terms: a. b. false true ., a a's amount and b b's. b. be can conclude current firm firms has have higher however, inventory liabilities. must of quick ratio ratio, sales, same smaller than that the therefore, turnover we
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