Liquidity Flashcards

1
Q

Current ratio=

A

Current assets / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Acid test ratio =

A

(Current assets - inventories) / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Ways to improve liquidity

A

Selling under-used fixed assets, raising more share capital, increase long term borrowing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly