Accounting
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Boundless Accounting
Analyzing Financial Statements
Accounting Textbooks Boundless Accounting Analyzing Financial Statements
Accounting Textbooks Boundless Accounting
Accounting Textbooks
Accounting

Section 5

Liquidity Ratios

Book Version 3
By Boundless
Boundless Accounting
Accounting
by Boundless
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2 concepts
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Current Ratio

Current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months.

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Quick Ratio (Acid-Test Ratio)

The Acid Test or Quick Ratio measures the ability of a company to use its assets to retire its current liabilities immediately.

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