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Which of the following statements are true regarding the relationship between the current ratio and the acid - test ratio? ( Choose every correct answer.
Which of the following statements are true regarding the relationship between the current ratio and the acidtest ratio? Choose every correct answer.
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For any given company, the current ratio will generally be higher than the acidtest ratio.
The current ratio increases working capital by a greater amount than does the acidtest ratio.
The acidtest ratio measures a company's current billpaying ability, whereas the current ratio measures a company's liquidity.
The acidtest ratio demonstrates the extent to which a firm can meet its current obligations even if none of its inventory can be sold.
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