0
What ratios is a measure of a company's ability to pay all current liabilities if they come due immediately?
Wiki User
∙ 10y ago
Quick Ratio helps the company to measure the ability to pay back immediately all the liabilities if they come due.
Formula
Quick ratio: Quick Assets/Current Liabilities
Quick Assets = Cash + Bank + Marketable Securities + Inventory
Sometimes inventories not included to check absolute liquidity because inventory also need some time to realize cash
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What ratio measures a company's ability to pay current liabilities?
current 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
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 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 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 ratio measures a company's ability to pay current liabilities?
current 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
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
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 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 firm's current liabilities?
Current liabilities are those liabilities and payables that would be paid withing 12 months
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.
What do current liabilities include?
Current liabilities included all liabilities payable in current fiscal year like accounts payable, current portion of long term liability etc.
What are non current liabilities?
Liabilities which are not due in current fiscal year are called non current liabilities like long term bonds, share capital etc.
Is short term debt the same as current liabilities?
Current liabilities are liabilities that are due within 12 months. Short term debt is a current liability. However, there are other current liabilities. For example, taxes payable, interest payable, wages payable, accounts payable. Therefore, short term debt is not the same as current liabilities. (Short term debt is a current liability, but not all current liabilities are short term debt.)
