medium · Principles of Finance financial-statements-markets-wc

If a company has a higher 'Quick Ratio' than its 'Cash Ratio' but its 'Current Ratio' is even higher, what does this primarily tell you about its current assets?

1. The company's liabilities are almost entirely accounts payable and accrued expenses.
2. The company holds significant amounts of accounts receivable and inventory.
3. The company relies heavily on long-term debt rather than current liabilities.
4. The company keeps very little actual cash relative to its other current assets.

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