Liquidity Ratios Flashcards
1
Q
Current Ratio (x:1)
A
Current Assets / Current Liabilities
2
Q
Liquid Capital Ratio (x:1)
A
Current Assets - Inventory / Current Liabilities
Current Ratio (x:1)
Current Assets / Current Liabilities
Liquid Capital Ratio (x:1)
Current Assets - Inventory / Current Liabilities