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IIA-CIA-PART3 · Question #283

IIA-CIA-PART3 Question #283: Real Exam Question with Answer & Explanation

The correct answer is A. Acid-test (quick) ratio. See the full explanation below for the reasoning.

Question

Which of the following is an indicator of liquidity that is more dependable than working capital?

Options

  • AAcid-test (quick) ratio
  • BAverage collection period
  • CCurrent ratio.
  • DInventory turnover.

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