Mathematics · Accounting Ratios
If the current ratio for a company is equal to its quick ratio, which of the following statements is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Working capital is positive
- 2Receivables plus cash is greater than payables minus inventories.
- 3The company does not carry any inventory.✓
- 4The current ratio must be greater than one.
Correct answer
The company does not carry any inventory.
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