Current Ratio : Current ratio is the ratio of current assets with current liabilities it tells about the capability of a company to meet its daily expenses. Best current ratio is 2:1. Quick Ratio: Quick ratio is the ratio of quick assets with current liabilities, it tells about the liquidity of the company/ business. Best possible quick ratio is 1:1. Requirement-1: To Calculate: Current ratio and quick ratio.
Current Ratio : Current ratio is the ratio of current assets with current liabilities it tells about the capability of a company to meet its daily expenses. Best current ratio is 2:1. Quick Ratio: Quick ratio is the ratio of quick assets with current liabilities, it tells about the liquidity of the company/ business. Best possible quick ratio is 1:1. Requirement-1: To Calculate: Current ratio and quick ratio.
Solution Summary: The author explains Current Ratio: Current ratio is the ratio of current assets with current liabilities, it tells about the ability of a company to meet its daily expenses.
Current Ratio: Current ratio is the ratio of current assets with current liabilities it tells about the capability of a company to meet its daily expenses. Best current ratio is 2:1.
Quick Ratio: Quick ratio is the ratio of quick assets with current liabilities, it tells about the liquidity of the company/ business. Best possible quick ratio is 1:1.
Requirement-1:
To Calculate:
Current ratio and quick ratio.
To determine
Concept Introduction:
Current Ratio: Current ratio is the ratio of current assets with current liabilities it tells about the how much company strong to meet its day to day expenses. Best current ratio is 2:1.
Quick Ratio: Quick ratio is the ratio of quick assets with current liabilities it tells about the liquidity of the company/ business. Best possible quick ratio is 1:1.