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    Fundamental Accounting Principles Study Set 1
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    Exam 5: Accounting for Merchandising Operations
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    A Company's Current Ratio Is 1
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A Company's Current Ratio Is 1

Question 87

Question 87

True/False

A company's current ratio is 1.2 and its quick ratio is 0.25. This company is probably an excellent credit risk because the ratios reveal no indication of liquidity problems.

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