quick ratio that is much smaller than the current ratio reflects

Question

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.

Answer 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.

From that, you can just read off the answer.