One of the most important assumptions behind the calculation of quick ratio is that: The firms accounts
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One of the most important assumptions behind the calculation of quick ratio is that:
The firm’s accounts receivables will be collected late (after the expiration of the credit period) or are uncollectible
The firm’s accounts receivables can be collected and converted into cash within the time period for which credit was granted
The firm’s inventories are highly liquid and can be sold quickly with minimal loss of value to assist in the settlement of the firm’s financial obligations
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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