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Why is the quick ratio a more refined liquidity measure than the current ratio?

Yes, quick ratio only incorporates those assets which immediately can be converted into cash like cash, marketable securities etc. and not included debtors or inventory


How do you define the default accounts to generate a quick ratio in Sage Line 50?

Whenever you update Sage they decide what accounts should be included in your Quick Ratio. Very annoying. Or if you are starting from scratch and want to change the accounts to be included, its very easy. Go to COMPANY then FINANCIALS and select RATIO from menu bar. Select any account that you don't want and just hit the DELETE button. To add accounts just select an empty cell in the N/C Ref column and use the Drop Down arrow to select which account you want included. Simplz


Is restricted cash included in quick ratio?

Restricted cash is typically excluded from the quick ratio calculation. The quick ratio focuses on a company's most liquid assets, such as cash, cash equivalents, and receivables, to assess its ability to meet short-term liabilities. Since restricted cash is not readily available for use in operations, it does not qualify as a liquid asset for this ratio.


Why are lease payments included in numerator of fixed charge coverage ratio?

because lease payment is deducted as expenses in profit and loss statement. So while calculating this ratio again we have to add it to earnings before interest and tax


Is owner's capital included in debt ratio calculation?

No, it does not. The debt ratio measures the ability to pay for both current and long term debts. This is calculated by dividing total liabilities over total assets. Owner's capital OS part of stockholders' equity.