# Financing

quick ratio that is much smaller than the current ratio reflects
A. a small portion of current assets is in inventory.
B. that the firm will have a high inventory turnover.
C. that the firm will have a high return on assets.
D. a large portion of current assets is in inventory.

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1. Look up the definitions of "quick ratio" and "current ratio". What is the difference?

The major difference in most companies will be the size of inventory as a current asset.

The quick ratio will always be smaller than the current ratio.

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