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Alternate Formula of Quick Ratio?
caligo, Student (MBA), India, Member
Which formula is right:
1. The formulae given in the knowledge center
or:
2. Quick Ratio = Current Assets -(Stock+Prepaid Expenses) / Current Liabilities....
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Alternate Formula of Quick Ratio
Jaap de Jonge, CEO, Netherlands, Editor In my opinion your formula is wrong. In the quick ratio we are interested in liquidity, so that is why we divide all assets which are quickly converti... |
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Special Interest Group Leader
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Quick Ratio
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