Identify the three main characteristics of liabilities.

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Chapter 11, Problem 1RQ

To determine

Identify the three main characteristics of liabilities.

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If someone tracks, tallys and totals a current liabilities for an accounting period, and then seeks to apply this value in a calculation to assess our liquidity, what’s the difference between the current ratio and the “acid-test” (or “quick”) ratio? Does the difference between these two metrics even matter?