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The cash credit ratio is a financial metric that measures the proportion of a company's cash and cash equivalents to its total current liabilities. It indicates a firm's liquidity position and its ability to meet short-term obligations. A higher cash credit ratio suggests better liquidity, while a lower ratio may indicate potential cash flow issues. This ratio is particularly useful for assessing the financial health of businesses that rely on short-term financing.
What else can I help you with?
What is entry of credit and cash purchases?
Debit Purchases Credit Cash
What is the journal entry for a cash sell?
Debit Cash Credit Sales
What is cash flow adequacy ratio?
Cash Flow Adequacy Ratio is the performance measure of cash sufficiency. It shows whether the company has enough cash to meet its expenses. A ratio of less than one means they don't have enough cash, and above one means their cash flow is sufficient.
When will the cash book have credit balance?
When company spend more cash then it actually has will cause credit balance of cash book.
An instrument of qualitative credit control of India is?
Mainly there are three qualitative instruments:1. Open market operations2. Bank rate3. Cash reserve ratio
What happens to the credit multiplier when the cash reserve ratio is increased?
The credit multiplier decreases.
How do you cure credit crunch?
By easing the monetary policies. By reducing cash reserve ratio, statutory liquidity ratio and repo rate, the amount of cash in circulation in the economy can be increased. This can help cure credit crunch...
How does withdrawing cash from a credit card impact my credit score?
Withdrawing cash from a credit card can negatively impact your credit score because it is considered a cash advance, which typically incurs high fees and interest rates. This can increase your credit utilization ratio and indicate financial stress to lenders, potentially lowering your credit score.
cash ratio?
this ratio assesses whether a company can pay its obligations using its cash. cash ratio is calculated using the following formula:Cash ratio = Cash and cash equivalents / Current liabilities
What is the average ratio of cash vs credit card payments for a sit down restaurant?
I run a putt putt golf course, which would probably be more equivalent of a fast food restaurant in terms of cash to credit. But we usually get 70% of revenue through cash and 30% through credit/debit cards.
What is ment by CRR?
CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY THIS IS CREDIT RESERVE RATION IN WHICH A COMMERCIAL BANK HAVE MAINTAIN A PERCANGE OF BALANCE WITH RBI CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY
Formula for calculating cash debosit ratio?
cash reserve ratio
What is a 'cash deposit ratio'?
Cash deposit ratio is with reference to a bank's the ratio of average cash balance held against total deposits of a particular branch.
What is entry of credit and cash purchases?
Debit Purchases Credit Cash
What is the journal entry for a cash sell?
Debit Cash Credit Sales
What do you mean by operating cash credit ac?
openinng cash credit its every time credit by account
What is cash adequacy ratio?
Cash Flow Adequacy Ratio is the performance measure of cash sufficiency. It shows whether the company has enough cash to meet its expenses. A ratio of less than one means they don't have enough cash, and above one means their cash flow is sufficient.
