A high current ratio does not always indicate that a company has a strong liquidity position. Describe

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A high current ratio does not always indicate that a company has a strong liquidity position. Describe two situations that might result in the current ratio appearing to be "artificially" high?

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Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Posted: Mar 31, 2017 01:12 AM

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A high current ratio does not always indicate that a company has a strong liquidity position. Describe

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A high current ratio might be hiding liquidity problem...View the full answer

Accounting Principles Part 3

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