Solution-Calculations a better measure of financial

Calculations a better measure of financial stability

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Reference no: EM132347693

One thing to keep in mind is that while inventory is eliminated when calculating the acid ratio, that calculation is still "iffy." Not all accounts receivable will be fully paid so even though this ratio would seem to be a "safer" measure of the firm's financial stability, it is not foolproof. What do you think would make the calculations a better measure of financial stability?

Reference no: EM132347693

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Calculations a better measure of financial stability

Reference no: EM132347693

Reference no: EM132347693

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