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How inventories affects the current ratio and acid test ratio From the first period to the second period the inventories' value in the balance sheet
How inventories affects the current ratio and acid test ratio From the first period to the second period the inventories' value in the balance sheet increases, while the rest of the asset and liabilities posts remain the same. How will the current ratio and the acid test ratio be affected by the increase in inventories?
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The current ratio is calculated as current assets divided by current liabilities Current a...
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
