Liquidity Ratios - Webs
Quick assets are the amount of assets that can be quickly converted to cash. Quick assets are used to determine the quick ratio and days of liquidity ratio. Quick Assets = cash + marketable securities + accounts receivable. Quick Ratio (a.k.a. Acid Test Ratio) The quick ratio is used to evaluate liquidity. Higher quick ratios are needed when a company has difficulty borrowing on ................
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