Successful use of a just-in-time inventory system can narrow the gap between the acid-test and the current ratio.

Name: Successful use of a just-in-time inventory system can narrow the gap between the acid-test and the current ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Just-in-time inventory system allows for more efficient management of inventory, resulting in lower inventory levels and increased liquidity. This can help narrow the gap between the acid-test ratio (a more stringent measure of liquidity) and current ratio.

Successful Use of a Just-In-Time Inventory System Can Narrow the Gap