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The Acid Test Ratio Is a More Rigorous Test of the Short-Term

question 70

True/False

The acid test ratio is a more rigorous test of the short-term liquidity of the venture as it eliminates inventory,which is the least liquid current asset.


Definitions:

Stakeholders

Groups that have a stake in the success and outcomes of a business.

Organizational Culture

The shared values, beliefs, and practices that influence the behavior and decision-making of an organization's members.

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