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One thing to keep in mind is that while inventory is eliminated when calculating the acid ratio, that calculation is still iffy.Not all accounts receivable
One thing to keep in mind is that while inventory is eliminated when calculating the acid ratio, that calculation is still "iffy."Not all accounts receivable willbe fully paid so even though this ratio would seem to be a "safer" measure of the firm's financial stability, it is not foolproof.What do you think would make the calculations a better measure of financial stability?
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