1. If a retailer collects on charge sales almost immediately, zero excess days

A. can be evidence of a retailers power over its suppliers.

B. would indicate the retailers customers are, in effect, paying its suppliers.

C. can indicate the retailers cash situation is worrisome.

D. both A and B are correct.

2. A high quick ratio could result from a firms

A. inability to collect its accounts receivable.

B. inability to sell its merchandise inventory.

C. both A and B are correct.

D. none of the above is correct.