Business, 20.02.2020 04:31 CurlyheadShay

Which of the following statement is incorrect? A. Ratio analysis involves analyzing financial statements to help appraise a firm’s financial position and strength. B. The current and quick ratios both help us measure a firm’s liquidity. The current ratio measures the relationship of the firm’s current assets to its current liabilities, while the quick ratio measures the firm’s ability to pay off short- term obligations without relying on the sale of inventories. C. If a firm sold some inventory on credit, its current ratio would probably not change much, but its quick ratio would increase. D. If a firm sold some inventory on credit as opposed to cash, there is no reason to think that either its current or quick ratio would change.

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Which of the following statement is incorrect? A. Ratio analysis involves analyzing financial statem...

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