Why is current ratio used?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: What could a drop in the current ratio indicate

A: Solution...     A drop in current ratio indicates

Q: ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing…

A: The ability of a business to pay its short-term financial commitments that are due within a year is…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: Current Assets Current Liabilities Case 1 $ 75,000 $30,000

A: Introduction: Current ratio: It tells the ability of the company to pay its short term obligations…

Q: quidity Analysis) The King Carpet Company has $3,160,000 in cash and a total of $11,160,000 in…

A: New current liability = $6910000 Less:- Short term note =$1535000           Current liability     =…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: What does a quick ratio show?

A: The study or analysis of the line items in the company's financial statements is known as a ratio.…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: What is current ratio

A:

Q: percentage

A: Margin of safety = Actual sales volume- Breakeven sales volumeActual sales volume = 34,500.UNIT RATE…

Q: Profit and loss accounts: - Alpha £000's £000's 420,000 Beta £000's £000's Turnover 315,000 Cost of…

A: Return on capital employed (ROCE) is one of a financial ratio which helps to analyse the ability of…

Q: The Jirapar CO. Transactions Date Accounting Transaction Thai Baht Supak invested property in…

A: Current  ratio= Current Assets/Current Liabilities   Let's prepare ledger Which Effect Current…

Q: what is its current ratio

A: Thank you for posting questions. Since above the image it is mentioned to calculate the Current…

Q: What does a current ratio show?

A: Ratios are the measures which are determined by the entity in order to analyze the position of the…

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Why are comparative ratio analyses useful?

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: WHAT IS THE TOTAL CURRENT RATIO?

A: Current ratio is a ratio used for measuring the liquidity of the business that how much current or…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: Current ratio formula?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: What is meant by the current ratio?

A: The current ratio is liquidity which measures the ability of the enterprise to pay its short-term…

Q: What does ROE measure?

A: Profitability ratio is referred as the financial metrics which is used by analysts as well as…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…