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  3. if a company is considered quotvery liquidquot or quothighly solventquot...

Question: if a company is considered quotvery liquidquot or quothighly solventquot...

Question details

If a company is considered "very liquid" or "highly solvent" for the year, this means it:

Must sell off its major fixed assets in order to stay in business.
Has an extremely low acid test (quick) ratio.
Is able to pay its current debts as they come due using its current assets.
Has a current ratio that is less than one.
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