If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company? 8. Which ratio is more relevant - quick ratio or current ratio? 9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?
If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company? 8. Which ratio is more relevant - quick ratio or current ratio? 9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.2: Vertical Analysis Of A Balance Sheet
Problem 1OYO
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7. If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company?
8. Which ratio is more relevant - quick ratio or current ratio?
9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?
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