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ADifferentiate Between the Current Ratio and the Quick Ratio

Question 110

Essay

a.Differentiate between the current ratio and the quick ratio.
b.Why is a 1 to 1 ratio acceptable for a quick ratio,yet a 2 to 1 ratio is considered satisfactory for the current ratio?

Correct Answer:

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Answered by ExamLex AI

a. The current ratio and the quick ratio...

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