Connect Access Card for Financial Accounting: Information and Decisions
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 13, Problem 5DQ
Summary Introduction

Concept Introduction:

The current ratio is one of the ratios used in financial statement analysis. The current ratio is used to evaluate the solvency of the company. It is calculated by dividing the total current assets by the total current liabilities.

To indicate:the reason a 2:1 current ratio may not be adequate for a company.

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License