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The ratio of the sum of cash receivables and marketable securities to current liabilities is called?
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∙ 12y ago
Is Current Ratio
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∙ 12y ago
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A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
Is Marketable securities considered a current asset?
yes
A firm which has a relatively large amount of cash and receivables in its current assets accounts and a relatively small amount of current liabilities would be considered?
liquid
What ratios is a measure of a company's ability to pay all current liabilities if they come due immediately?
Quick Ratio helps the company to measure the ability to pay back immediately all the liabilities if they come due. Formula Quick ratio: Quick Assets/Current Liabilities Quick Assets = Cash + Bank + Marketable Securities + Inventory Sometimes inventories not included to check absolute liquidity because inventory also need some time to realize cash
If current liabilities are 7714 and total liabilities are 18187 what is the ratio of current liabilities to total liabilities?
Current Liabilities to Total Liabilities Ratio = Current Liabilities / Total Liabilities Current Liabilities to Total Liabilities Ratio = 7714 / 18187 Current Liabilities to Total Liabilities Ratio = 0.42 or 42%
A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?
Quick ratio.
What assets are likely to be assessed closest to market value?
· Cash and near-cash · Account receivables · Other current assets · Marketable securities
Is Marketable securities considered a current asset?
yes
What is the purpose of a quick ratio?
Quick ratio is very important to assess the liquidity condition of company as compare to current liabilities, so that in case of emergency repayment or cash required how much money can be arrange by selling current assets like marketable securities or inventory etc.
What is the definition of a liquidity ratio?
Liquidity ratio are designed to test a company's ability to meet its short-term financial obligations. To find the ratio, you take Cash and Cash Equivalent + Marketable Securities + Accounts Receivable divided by Current Liabilities.
A firm which has a relatively large amount of cash and receivables in its current assets accounts and a relatively small amount of current liabilities would be considered?
liquid
Non current liabilities report on which section of a balance sheet?
Hi, Non current Liabilities is under the section of Liabilities Section, thus, it has to be reported under Liabilities of the balance sheet. ASSETS cash and cash equivalents xxxx trade receivables xxxxx xxxxx xxxxxx LIABILITIES and SHAREHOLDER'S EQUITY Current Liabilities: xxxxx xxx xxxxx xxx Total Current Liab. xxxx Non-Current Liablilities: xxxxx xxx xxxxx xxx Total Non-Current Liab. xxxx LIABILITIES xxxxx
What ratios is a measure of a company's ability to pay all current liabilities if they come due immediately?
Quick Ratio helps the company to measure the ability to pay back immediately all the liabilities if they come due. Formula Quick ratio: Quick Assets/Current Liabilities Quick Assets = Cash + Bank + Marketable Securities + Inventory Sometimes inventories not included to check absolute liquidity because inventory also need some time to realize cash
Is Marketable Securities a current asset?
yes
If current liabilities are 7714 and total liabilities are 18187 what is the ratio of current liabilities to total liabilities?
Current Liabilities to Total Liabilities Ratio = Current Liabilities / Total Liabilities Current Liabilities to Total Liabilities Ratio = 7714 / 18187 Current Liabilities to Total Liabilities Ratio = 0.42 or 42%
Use the Wall Street Journal or some other financial publication to find the going interest reate for marketabe securities?
I'm unable to browse the internet in real-time to provide current interest rates for marketable securities. I recommend checking reputable financial websites like the Wall Street Journal, Bloomberg, or CNBC for the most up-to-date information on interest rates for marketable securities.
Nature and scope of working capital?
Nature of Working CapitalWorking Capital Management is concerned with the problems that arise in attempting to manage the Current Assets, the Current Liabilities and the inter-relationship that exists between them. The term Current Assets refers to those Assets which in the ordinary course of business can be, or will be, converted into Cash within one year without undergoing a diminution in value and without disrupting the operations of the firm. The Major Current Assets are Cash, Marketable Securities, Accounts Receivables and Inventory.Current Liabilities are those Liabilities, which are intended at their inception, to be paid in the ordinary course of business, within a year out of the current assets or the earnings of the concern .The basic Current Liabilities are Accounts Payable, Bills Payable, Bank Overdraft and outstanding expense. The goal of Working Capital Management is to manage the firm's Assets and Liabilities in such a way that a satisfactory level of working capital is maintained. This is so because if the firm cannot maintain a satisfactory level of working capital, it is likely to become insolvent and may even be forced into bankruptcy.The Current Assets should be large enough to cover its current liabilities in order to ensure a reasonable margin of safety. Each of the current assets must be managed efficiently in order to maintain the liquidity of the firm while not keeping too high a level of any one of them. Each of the short term sources of financing must be continuously managed to ensure that they are obtained and used in the best possible way. The interaction between current assets and current liabilities is, therefore, the main theme of the theory of management of workingcapital.
