Quiz Ch 04 – T/F Interpreting Ratios: Current and Inventory Turnover
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
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.