Which of the statements below is FALSE - the acid ratio test equals current assets minus inventories divided by current liabilities - the current ratio is current assets divided by current liabilities - inventory turnover equals cost of goods sold divided by inventory - examples of liquidity ratios include current ratio, the cash coverage ratio, and the quick ratio
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The acid ratio test, also known as the quick ratio, is calculated by subtracting inventories from current assets and dividing the result by current liabilities. - Show more…
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