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State about 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 item least representing cashitem, because it needs to be sold. Normal is around 1: 1 however this varies within different industries.
• Graph the Current and Quick Ratios for the five years. • Analyze observations of the trends you observed. • Support you analysis with information you observe from the Trend and
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what are the types of non-statuary reports?
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