Determining the measure of liquidity

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1. Financial ratios don't do you much good by themselves. Explain.

2. What is the reasoning behind using the current ratio as a measure of liquidity?

3. Why do we need the quick ratio when we have the current ratio?

4. A company's terms are net 30 and the ACP is 35 days. Is that cause for alarm? Why or why not?

Reference no: EM131007553

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