answersLogoWhite

0

What else can I help you with?

Related Questions

What ratio measures a company's ability to pay current liabilities?

current ratio


A financial ratio that measures the ability to pay current liabilities with liquid assets (cash marketable securities and receivables) is called?

Quick ratio.


What quick ratio indicates?

Quick ratio indicates company's liquidity and ability to meet its financial liabilities. Formula of quick ratio = (Current assets - Inventory)/Current Liabilities


Which statement shows liabilities?

Balance sheet is the financial statement which shows all the current as well as non-current liabilities of business.


Where is senior debt presented on financial statements?

Current Liabilities


Evaluation of a company's ability to pay current liabilities?

Use the following ratios to evaluate a company's ability to pay current liabilities: Working Capital Ratio Current Ratio Acid-test Ratio


What is the difference between current assets and current liabilities in a company's financial statement?

Current assets are resources that a company owns and can convert into cash within one year, such as cash, inventory, and accounts receivable. Current liabilities are debts and obligations that the company needs to pay within one year, like accounts payable and short-term loans. The difference between current assets and current liabilities shows the company's liquidity and ability to meet its short-term financial obligations.


How do you calculate the current ratio and what does it indicate about a company's financial health?

The current ratio is calculated by dividing a company's current assets by its current liabilities. It indicates a company's ability to cover its short-term obligations with its short-term assets. A higher current ratio generally suggests better financial health, as it shows the company has more assets than liabilities to meet its short-term debts.


How does a business calculate the current ratio and why is it important for financial analysis?

A business calculates the current ratio by dividing its current assets by its current liabilities. This ratio helps assess a company's ability to cover its short-term debts with its current assets. It is important for financial analysis because it indicates the company's liquidity and financial health. A higher current ratio generally suggests a stronger financial position.


What is the difference between current assets and current liabilities?

Current assets are resources that a company owns and can convert into cash within a year, such as cash, inventory, and accounts receivable. Current liabilities are debts and obligations that are due within a year, such as accounts payable and short-term loans. The difference between current assets and current liabilities is known as working capital, which represents the company's ability to meet its short-term financial obligations.


What is current laibilities?

The outstanding financial commitments a company has at the time of enquiring what these liabilities are


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%