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FRA_Accounting Ratios Revision > Liquidity Ratios > Flashcards

Liquidity Ratios Flashcards

1
Q

What is the Current Ratio?

A

Current Assets / Current Liabilities

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2
Q

What is the Quick Ratio?

A

(Current Assets - Inventory) / Current Liabilities

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3
Q

How do you calculate the Cash Ratio?

A

Cash & Cash Equivalents (i.e. liquid assets / Current Liabilities

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FRA_Accounting Ratios Revision (10 decks)

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