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The quick ratio differs from the current ratio in that it: a) is more difficult to calculate. b) excludes inventories and accounts receivable from the
The quick ratio differs from the current ratio in that it:
a) is more difficult to calculate.
b) excludes inventories and accounts receivable from the numerator of the fraction because of obsolescence and possible default on payment.
c) represents the amount of cash on hand instead of the amount of working capital.
d) is a stricter test of a company's ability to pay its current debts as they are due.
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