In this chapter, we said that the quick ratio is a better measure of liquidity than is

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In this chapter, we said that the quick ratio is a better measure of liquidity than is the current ratio because the quick ratio includes only those current assets that may be easily converted to cash. Required:

What is the quick ratio? Do you think this is the best possible measure of liquidity? If so, defend your answer. If not, design a better measure and defend it.

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Accounting Information For Business Decisions

ISBN: 9780170253703

2nd Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons

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