CFA Practice Question

CFA Practice Question

Which of the following is incorrect?
A. Current Ratio is current assets / current liabilities.
B. Quick Ratio is (cash+ marketable securities + accounts receivables + inventory) / current liabilities.
C. Cash Ratio is (cash + marketable securities)/current liabilities.
Explanation: Quick ratio is (cash+ marketable securities + accounts receivables) / current liabilities. Other ratios are correct.

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