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Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 31)

If a company has a quick ratio of 0.8, what does that indicate?
The company is managing its inventory efficiently.
The company may have difficulty paying its short-term debts.
The company has a high level of profitability.
The company has a high return on capital employed (ROCE).

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A quick ratio below 1.0 suggests potential liquidity problems.

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