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Financial Ratios
Essay specific features
Written by:
Michael H
Date added:
November 28, 2015
Level:
University
Grade:
A
No of pages / words:
2 / 406
Was viewed:
8683 times
Rating of current essay:
Essay content:
An accountant uses the liquidity ratio as a way to "measure and show a business' ability to meet short-term obligations when they must be paid," (p.528). Current and acid ? test are two commonly used liquidity ratios. Current ratio "compares current assets and liabilities, giving manager's information about the business' ability to pay off its current debts as they mature," (p...
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Current and acid ? test are two commonly used liquidity ratios. Current ratio "compares current assets and liabilities, giving manager's information about the business' ability to pay off its current debts as they mature," (p. 528). Basically the current ratio compares all current assets and liabilities...
displayed 300 characters
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