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What is called a financial ration that measures the ability to pay current liabilities with liquid assets?

The financial ratio that measures the ability to pay current liabilities with liquid assets is called the "current ratio." It is calculated by dividing a company’s current assets by its current liabilities. A higher current ratio indicates better liquidity and financial health, suggesting that the company can easily meet its short-term obligations. A ratio below 1 may indicate potential liquidity problems.


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

Quick ratio.


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


Can Banks have a negative current ratio?

No, banks cannot have a negative current ratio. The current ratio, which measures a company's ability to pay its short-term liabilities with its short-term assets, is calculated as current assets divided by current liabilities. Since current assets (like cash, loans, and securities) are typically positive values for banks, a negative current ratio would imply that current liabilities exceed current assets to an unrealistic extent. However, banks often operate with a unique structure and may have different liquidity measures more suited to their business model.


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%


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


How do you find the interval measure with a balance sheet?

To find the interval measure using a balance sheet, you can analyze the company's current assets and current liabilities to calculate the current ratio. This ratio, which is the current assets divided by current liabilities, indicates the company's ability to cover short-term obligations. Additionally, you can assess the long-term stability by examining total assets against total liabilities to calculate the debt-to-equity ratio. These measures help evaluate financial health over specific intervals.


What is a current piece of Australian legislation that has relevance to the workplace and a companys ability to reach efficiency targets?

the north place


What do current liabilities mean in accounting?

Current Liabilities in accounting are amounts that are owed by a business. The two types of current liabilities are short-term and long-term liabilities.


What firm's current liabilities?

Current liabilities are those liabilities and payables that would be paid withing 12 months


What is schedule of changes in working capital?

Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. Working capital is defined as the difference between a company's current assets and current liabilities.


What is current liabilities to total assets ratio?

Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.