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    Contemporary Accounting
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    Exam 10: Financial Statement Analysis
  5. Question
    When Measuring Short-Term Solvency, the Current Ratio Compares Current Assets
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When Measuring Short-Term Solvency, the Current Ratio Compares Current Assets

Question 46

Question 46

True/False

When measuring short-term solvency, the current ratio compares current assets to current liabilities, but inventory is normally excluded when calculating the quick ratio.

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