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      Question

      A firm’s current ratio is 1.5:1 and quick ratio is

      1.5:1. What does it suggest about inventory?
      A High inventory Correct Answer Incorrect Answer
      B No inventory Correct Answer Incorrect Answer
      C Inventory equals liabilities Correct Answer Incorrect Answer
      D Inventory equals quick assets Correct Answer Incorrect Answer

      Solution

      If both current and quick ratios are same, it implies no inventory is held.

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