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Example of Short-term Solvency
Current Ratio = Current Assets / Current Liabilities
= 5.38
This has increased from 3.97 in the previous year to 5.38 in the current year, indicating that the working capital of the company has increased and hence strengthening its liquid position.
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
= 4.57
This has increased from 3.47 in the previous year to 4.57 in the current year, indicating that there was some reduction in its Inventory as a part of it was sold off.
what are the effects of failure to adjust entries
Probability Analysis This engrosses the assessment of the probabilities of future events linked to an investment project. If these events are universal circumstances the techni
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