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  3. Study Set
    Using Financial Accounting
  4. Exam
    Exam 2: Financial Statements and the Annual Report
  5. Question
    The Current Ratio Is Irrelevant in Liquidity Analysis for Service
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The Current Ratio Is Irrelevant in Liquidity Analysis for Service

Question 5

Question 5

True/False

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets.

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