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One of the most important assumptions behind the calculation of quick ratio is that: The firms accounts receivables will be collected late (after the expiration
One of the most important assumptions behind the calculation of quick ratio is that:
The firms accounts receivables will be collected late (after the expiration of the credit period) or are uncollectible
The firms accounts receivables can be collected and converted into cash within the time period for which credit was granted
The firms inventories are highly liquid and can be sold quickly with minimal loss of value to assist in the settlement of the firms financial obligations
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