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You have calculated the following financial ratios for the past three years. For each question select the correct response. Year 1 Year 2 Year 3

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You have calculated the following financial ratios for the past three years. For each question select the correct response. Year 1 Year 2 Year 3 Quick ratio 2.3 2.1 1.8 Cash ratio 0.4 0.7 0.9 A. According to these ratios, the liquidity of the business is A B. The likely reason for the changing spread between the two ratios is on the balance sheet over time

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