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Last Year, a Firm Had a Current Ratio of 2

Question 113

Multiple Choice

Last year, a firm had a current ratio of 2.0 and an acid-test ratio of 1.0. This year the firm's current ratio is 2.5 and its acid-test ratio is 1.5. This firm's ______ has ______.


A) liquidity; improved
B) liquidity; deteriorated
C) profitability; improved
D) profitability; deteriorated

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