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Subject 5. Uses and Analysis of the Balance Sheet , more importantly, cash flows. Each of the following ratios takes a slightly different view of cash or near-cash items.
Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. <span>It is the best-known liquidity measure. A current ratio of less than 1 indicates the company has negative working capital.
Quick Ratio (Acid-Test Ratio) eliminates less liqu
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