Kevin Jones is a financial analyst who provides consulting services. Kevin considers the acid test ratio to be a better measure of liquidity than the current ratio, for a pharmaceutical company. This conclusion rests on which of the following assumptions?
A. The company has consistently paid dividends in the past.
B. The company has high inventories and a low inventory turnover ratio.
C. The company has one of the highest ROI ratios in the industry.
D. The company has a very low acid test ratio