Which of the following statements is true?
A) Current assets consist of cash, accounts receivable, inventory, and net plant, property, and equipment.
B) The quick ratio is a more restrictive measure of a firm's liquidity than the current ratio.
C) For the average firm, inventory is considered to be more "liquid" than accounts receivable.
D) A successful firm's current liabilities should always be greater than its current assets.
Answer: B
Business
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What will be an ideal response?
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