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the two ratios that measure liquidity is acid test and current ratio.
the acid test ratio is current assets- stock/ current liabilities
the current ratio is current assets/ current liabilities
Wiki User
∙ 13y ago
Wiki User
∙ 13y agocurrent ratio and acid test ratio. current ratio is current assets/current liabilities. and acid test ratio is current assets- stock/ current liabilities.
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Does leverage and liquidity rise and fall together?
yes
What are the indicators of prudential regulations?
The main indicators of prudential regulations are capital adequacy, liquidity and risk profile.
How do astronomers measure it?
How do they measure what?
The measure of b is twice the measure ofa. What is the measure of d?
120
What do meters and liters and kilograms measure?
Meters measure length, liters measure capacity, and kilograms measure weight.
A common measure of liquidity is?
water
What is the purpose of the liquidity ratio?
Liquidity ratios measure the availability of cash to pay debt
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Why is liquidity important?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Would you expect net income to be a good measure of a company's liquidity?
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
What are some types of liquidity ratios?
current and quick ratios. The quick (acid test) ratio is a more accurate measure of liquidity because it excludes inventories.
How fast and item can be turned into cash?
Liquidity is a measure of how quickly an asset can be turned into cash.
What are the Liquidity ratios?
measure of a firms ability to meet short term cash payments. bassically liquidity ratios show how good a business is at paying off its debts. hope this helps :)
How might you measure a company's liquidity and short-term debt paying ability?
CALCULATE CURRENT RATION Type your answer here...
Why might a profitable business face liquidity problems?
No liquidity
How can a company improve its liquidity position?
How can the liquidity position of a company be improved
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
