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The reason for subtracting inventories from current assets when calculating the quick (or acid-test) ratio is: a. to eliminate the leaste liquid of current assets.
The reason for subtracting inventories from current assets when calculating the quick (or acid-test) ratio is:
a. to eliminate the leaste liquid of current assets.
b. to eliminate the problem of FIFO versus LIFO.
c. none of the above.
d. to better measure the consequences of a stock-out
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