Business, 08.04.2020 04:37 july00

Which of the following best describes measures of immediate liquidity? The current ratio and the quick ratio will always have different results regardless of the industry in which the company operates. The quick ratio excludes inventory in the denominator because most businesses cannot readily convert inventory to cash. The current ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle. The quick ratio reflects existing cash as well as amounts to be converted to cash in the normal operating cycle.

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Which of the following best describes measures of immediate liquidity? The current ratio and the qui...