Solution-Measure of the firm financial stability

Measure of the firm financial stability

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Reference no: EM132348568

One thing to keep in mind is that while inventory is eliminated when calculating the acid ratio, that calculation is still "iffy." Not all accounts receivable will be fully paid so even though this ratio would seem to be a "safer" measure of the firm's financial stability, it is not foolproof. What do you think would make the calculations a better measure of financial stability?

Reference no: EM132348568

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Measure of the firm financial stability

Reference no: EM132348568

Reference no: EM132348568

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