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Accounting > Liquidity Ratios > Flashcards

Liquidity Ratios Flashcards

1
Q

What do liquidity ratios measure

A

a business’ ability to meet its current liabilities with its most liquid assets.

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2
Q

Current ratio =

A

Current liabilities

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3
Q

Liquid capital ratio

A 
 Current liabilities
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4
Q

What are liquidity ratios expressed as?

A

Ratios to two decimal places e.g X:1

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Accounting (118 decks)

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