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Choose the Correct Explanation for the Liquidity (Quick)ratio

Question 1

Multiple Choice

Choose the correct explanation for the liquidity (quick) ratio.


A) A measure of a business's ability to pay debts and obligations due beyond 1 year
B) A measure of a business's ability to pay debts and obligations due within 2 years
C) A measure of a business's ability to pay debts and obligations due within 1 year
D) A measure of a business's ability to pay debts and obligations due within 1 year,excluding the value of inventory and prepaid expenses

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