Explain the usefulness of each of the following ratios in reviewing the performance of a business: i) Current Ratio (2 marks) ii) Acid Test Ratio (2 marks) iii) Receivables Collection Period (2 marks) iv) Payables Settlement Period (2 marks) v) Inventory Turnover Rate (2 marks)

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Explain the usefulness of each of the following ratios in reviewing the
performance of a business:
i) Current Ratio (2 marks)
ii) Acid Test Ratio (2 marks)
iii) Receivables Collection Period (2 marks)
iv) Payables Settlement Period (2 marks)
v) Inventory Turnover Rate (2 marks)

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