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In solving a rational equation, all possible answers must be checked in the original equation.
Current Ratio
This ratio evaluates the ability of a business to meet its short-term liabilities by utilizing its current assets.
Quick Ratio
A gauge of a business's capability to cover its short-term debts using its most readily accessible assets.
Fixed Asset
Long-term tangible assets that a company uses in its operations to generate income, such as buildings, machinery, and equipment.
Long-Term Debt
Borrowings of a company not due for payment within the upcoming 12-month period, often used for major investments or acquisitions.
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