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All Equaitions For Bussness Spertated Into Sections > Measuring Liquidity > Flashcards

Measuring Liquidity Flashcards

1
Q

What is the formula for the Current Ratio?

A

Current assets / current liabilities

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2
Q

What is the Liquid Capital Ratio also known as?

A

Acid Test Ratio

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3
Q

How is the Liquid Capital Ratio calculated?

A

(Current assets - inventory) / current liabilities

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4
Q

What does the Current Ratio measure?

A

Liquidity of a company

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All Equaitions For Bussness Spertated Into Sections (7 decks)

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