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"
Statements:
Some medals are sports.
All the sports are games.
Conclusions:
I. Some medals are games.
II. No sport is medal
In the questions given below, there are three statements followed by three conclusions I, II and III. You have to take the three given statements to be...
In the question below some statements are given followed by three conclusions I, II, and III. You have to take the given statements to be true even if ...
In the question below consists of three statements followed by five conclusions. Assume the given statements to be true even if they seem to be at vari...
In the following question below are given some statements followed by some conclusions based on those statements. Taking the given statements to be tru...
Statements-:
Some A are B
No B are C
All C are D
Conclusions :-
I. Some A are not B.
II. No A are C.
...In the question below some statements are given followed by three conclusions I, II, and III. You have to take the given statements to be true even if ...
In the question below, there are two conclusions followed by three statements in the options. You have to take the three given statements to be true ev...
given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow...
Statements:All circles are rectangles.
No rectangle is a square.
Conclusions:I. No square is a rectangle.
II. Some rectangles are...
