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It is important to review not just the Current Ratio, but also the Quick Ratio and Cash Ratio because: Multiple Choice the Cash Ratio must

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It is important to review not just the Current Ratio, but also the Quick Ratio and Cash Ratio because: Multiple Choice the Cash Ratio must always provide a greater statistic than the Current Ratio and Quick Ratio. the Quick Ratio includes inventory that can be easily liquidated for cash. a low Current Ratio may not necessarily indicate a problem with a company. companies can operate with a Cash Ratio close to zero and maintain liquidity. GAAP requires it

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