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One Problem with Ratio Analysis Is That Relationships Can Sometimes

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One problem with ratio analysis is that relationships can sometimes be manipulated.For example,if our current ratio is greater than 1.5,then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to INCREASE.

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Three-Stage Process

A generic framework describing a sequence of three phases or steps in a particular process, often applied in various contexts such as learning, decision-making, or product development.

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