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Question 20 (5 points) Which of the statements below is FALSE? Question 20 options: The acid ratio test equals current assets minus inventories divided by
Question 20 (5 points)
Which of the statements below is FALSE?
Question 20 options:
The acid ratio test equals current assets minus inventories divided by current liabilities. | |
Examples of liquidity ratios include the current ratio, the cash coverage ratio, and the quick ratio. | |
The current ratio is current assets divided by current liabilities. | |
Inventory turnover equals cost of goods sold divided by inventory. |
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