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Liquidity of a business is measured by two liquidity ratios, viz.,Current Ratio and Quick Ratio (also known as Acid-Test Ratio).
While current ratio is the ratio between current assets and current liabilities, acid-test ratio is the ratio between quick assets (i.e., current assets minus inventories) and current liabilities.
In real life business situations the above two ratios are not adequate at all. What we actually need is on-the-spot liquidity when the situation so warrants. It is in this context,
after extensive consultations with trade and industry, I have developed a new ratio called Trigger Ratio. It is the ratio between the cash available on hand today to the cash payments required to be made today. This ratio should obviously be more than 1 on a given day.
People who understand business well will surely appreciate the relevance and value of this pragmatic ratio.
What else can I help you with?
Why do different liquids boil at different temperatures?
These liquids have different chemical composition and structure.
How does different liquids affect roses?
how do different liquids affect a rose
Is an erlenmeyer flask also called a graduated cylinder?
No, an Erlenmeyer flask is a type of laboratory glassware used for mixing, heating, or storing liquids. A graduated cylinder is a different type of laboratory glassware used for measuring the volume of liquids.
Why do different liquids have different viscossities?
Different liquids are made up of different types of molecules, which have different masses, different forces between them, etc.
How are liquids different from a gas and solid?
Liquids have the form of the containers.
Do different liquids refract light differently?
Yes, different liquids have different refractive indices, which means they can bend light differently. This causes light to travel at different speeds and directions when passing through different liquids.
What helps for mixing liquids LOL?
a spoon? some water? What type of liquids?
In what way are solids different from liquids?
liquids don't have a particular form solids do and take up a shape liquids do not.
What can you conclude about 2 liquids with different boiling points?
These liquids can be separated by distillation.
How is gas different from solids and liquids?
Both liquids and Solids have definite volumes
How would you separate liquids if two liquids boil at different temperatures?
Distillation.
Why do liquids have different volumes?
Perhaps there are different amounts of them.
