Liquidity Ratios Flashcards by Kieran Farmer | Brainscape

Q

Current ratio

A

Current assets
/ current liab

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Q

Acid test ( quick ratio )

A

Current assets - inventories - prepayments

/current liab

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Q

Cash ratio

A

Cash and cash equivalents

/current liab

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Q

Trade receivables

A

Avg trade receivables
/ credit revenue

X 360

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Q

Inventory

A

Avg inventories
/ COS

X 360

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Q

Trade payables

A

Avg trade payables
/ credit purchases

X 360

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