1. Ratios were categorized in the chapter according to their use in performing three different types of analysis. What are the three types of ratios? 2. A company has a current ratio of 1.25 but an...

1. Ratios were categorized in the chapter according to their use in performing three different types of analysis. What are the three types of ratios?

2. A company has a current ratio of 1.25 but an acid-test (or quick) ratio of only 0.65. How can this difference in the two ratios be explained? What concerns might you have about this company?