hard · Principles of Finance

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 mostly composed of accounts payable.
2. The company holds significant amounts of accounts receivable and inventory.
3. The company is highly leveraged with long-term debt.
4. The company has very little cash on hand.

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