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As businesses grow and professional management develops, there is a shift toward:
Current Ratio
A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.
Current Liabilities
Short-term financial obligations that a company is required to pay within one year.
Acid-Test Ratio
A financial metric used to determine a company's short-term liquidity position by calculating the ratio of its most liquid assets to its current liabilities.
Stockholders' Equity
The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of the shareholders.
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