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Business Studies Accounting And Finance > liquidity ratios > Flashcards

liquidity ratios Flashcards

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1
Q

Current Ratio

A

Current Assets / Current Liabilities

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2
Q

Acidity Test Ratio

A

(Current Assets - Stock) / Current Liabilities

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3
Q

Gearing ratio

A

(Fixed cost capital / long term capital) X 100

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4
Q

Interest cover

A

Profit before tax and interest / interest

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Business Studies Accounting And Finance (7 decks)

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