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What is the relationship between the following two compounds?
Accounts Receivable
Money owed to a company by its customers for products or services that have been delivered but not yet paid for.
Inventory
The total amount of goods and materials held by a company for the purpose of resale or production.
Current Ratio
A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.
Acid-Test Ratio
A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).
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