A variation of the current ratio is the quick ratio (also called the acid-test ratio ). In

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A variation of the current ratio is the quick ratio (also called the acid-test ratio ). In this ratio, inventory is often excluded from the current assets, and the remainder is divided by current liabilities. This is a more stringent measure of immediate bill-paying ability than the current ratio.

Calculate this ratio for Chico Company:image text in transcribed

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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