Accounts-Receivable-Ratios-Accounting-Assignment-Homework-Help

Liquidity ratios determine an organization’s ability to meet its short-term obligations. Some examples of liquidity ratios are current ratio, acid-test ratio, and days’ sales in average receivables.
Consider the various liquidity ratios and respond to the following:

Discuss the importance of liquidity ratios in short-term financial decision making.

 
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