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FIN2601 - Chapter 3) Introduction to
ratios Questions And Answers
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16
July 2026
2025/2026
A+
FIN2601 - Chapter 3) Introduction to
ratios Questions And Answers
Quick ratio or Current ratio: The
_____________ ratio provides a better overall
measure of liquidity only when a firm's
inventory cannot be easily converted to cash. If
inventory is liquid, the _______________ ratio
is a preferable measure of overall liquidity. -
ANSWER-Quick, Current
______________, a firm's ability to satisfy its
short-term obligations as the come due. -
ANSWER-Liquidity
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