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Q. Show the Quick ratio or acid test?
Quick ratio = Current assets less inventories/Current liabilities (times)
This ratio measures immediate solvency of a business as it removes inventories out of the equation, which is the item least representing cash, as it needs to be sold. Normal is around 1: 1 however this varies within different industries.
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what economic factors affect current account balances
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Q. Calculate DR's quick ratio? DR has the following balances under current assets and current liabilities: Current assets $ Current liabilities
Current ratio (CA) or working capital ratio CA = Current assets/Current liabilities (times) Current ratio measures the short term solvency or liquidity; it signifies the ext
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