Final answer:
The firm has a higher current ratio (1.4) than quick ratio (0.9), indicating it can pay short-term debts with its assets, but when excluding inventory, its immediate liquidity is lower.
Step-by-step explanation:
The student's question is about understanding financial ratios, specifically the current ratio and the quick ratio. In this case, the current ratio is given as 1.4, and the quick ratio is given as 0.9. The current ratio is a liquidity ratio that compares a company's current assets to its current liabilities, indicating the firm's ability to pay off its short-term debts with its short-term assets. The quick ratio, also known as the acid-test ratio, is a measure of a company's immediate ability to pay off its current liabilities without relying on the sale of inventory. Consequently, based on the given information, it is certain that the firm has a higher current ratio than quick ratio, as the current ratio includes inventory assets, whereas the quick ratio excludes them.