The liquidity ratio, known as the _______________ ratio, has a disadvantage that it uses year-end balances for current assets and current liabilities. The ___________ partially corrects for this problem by using cash provided by operating activities and average current liabilities rather than point in time numbers.

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The Answer of The liquidity ratio, known as the _______________ ratio, has a disadvantage that it uses year-end balances for current assets and current liabilities. The ___________ partially corrects for this problem by using cash provided by operating activities and average current liabilities rather than point in time numbers.

The Liquidity Ratio, Known as the _______________ Ratio, Has a Disadvantage