Question
Firm X and Y have the same quick ratio, but Firm X has
a greater current ratio than Firm Y. Compared to Firm Y, it is most likely that Firm X has:Solution
"Inventory is not included in quick assets while calculating the quick ratio. But inventory is included in the numerator while calculating the current ratio. So, an increase in the numerator for Firm X because of greater inventory makes its current ratio more than Firm Y. Accounts payable are included in current liability, and it’s the same in the case of quick ratio and current ratio. We do not have full information about turnover ratios so can not comment on that. Therefore, greater inventory for Firm X will result in a higher current ratio"
In the following question, out of the given alternatives, choose the best one which expresses the meaning of the given word.
Quell
Select the option that can be used as a one-word substitute for the given group of words.
A system of government in which most of the important d...
Candour
A. The bold realist whose candour , even temerity, was legendary turned out to have been hiding a secret.
B. Their candour is a ve...
Rogue
select the most appropriate option to substitute the bold segment in the given sentence. If there is no need to
substitute it , select ‘ No Sub...
Select the most appropriate option that can substitute the bold word in the given sentence.
Besides generating revenue, tourism brings a break fr...
Select the option that can be used as a one-word substitute for the given group of words.
Something that happens often or that lasts for a ...
Select the most appropriate option to substitute the highlighted segment in the given sentence. If there is no need to substitute it, select ‘No subs...
Unanimously
Choose the word that can substitute the given group of words.
A religions war
