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pashok25 [27]
2 years ago
9

Which liquidity ratio is considered to be the most stringent because it eliminates inventory in its measurement

Business
1 answer:
balu736 [363]2 years ago
5 0

Acid test or quick ratio is the liquidity ratio that is most stringent because it

eliminates inventory in its measurement.

Acid test ratio can be calculated by:

<u>Current assets - inventory</u>

current liabilities

Acid test ratio eliminates the inventory which is the least liquid asset from

current assets. This ratio help companies determine how fast it can convert

its assets into cash in order to take care of its liabilities.

Read more about Acid test ratio on brainly.com/question/25814739

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Answer:

B. Step-up/Step-down CD

Explanation:

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

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3 years ago
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Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

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3 years ago
Select the benefits of monitoring goal progress.
kobusy [5.1K]
Keeps you on track or gives you feedback.
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You are the CFO of a major pharmaceutical firm. A division manager has presented senior management with an investment opportunit
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Explanation: Espero que esto te ayude si no dime para ir a buscar mas informacion!

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