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To determine a company's current ratio, divide its current assets by its current liabilities. This ratio helps assess the company's ability to cover its short-term debts with its current assets.

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5mo ago

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How can one determine the current ratio in accounting?

The current ratio in accounting can be determined by dividing a company's current assets by its current liabilities. This ratio helps assess a company's ability to cover its short-term debts with its current assets.


How do you calculate current on the primary side of a transformer only knowing the turns ratio and the voltage ratio?

The primary current on a loaded transformer depends on the secondary current, which is determined by the load. So, if you know the secondary load current, then you can use the turns ratio of the transformer to determine the primary current:Ip/Is = Ns/Np


How do you get a current ratio?

Formula for current ratio is as follows: Current ratio = Current assets / current liabilities


What is a measure of liquidity?

the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities


An example of liquidity ratio is the?

current ratio and acid test ratio are examples of liquidity ratios'. current ratio is current asset's/ current liabilities. acid test ratio is current assets- stock / current liabilities.


The ratio of current assets to current liabilities is called the?

The ratio between current assets to current liability is called "Current Ratio".


What is the equation for current ratio?

Current Ratio = Current Assets / Current Liabilities


Can ohm's law be used to determine current or resistance in a current?

yeah of-course..... for DC circuit holds good...:)Another AnswerYou can use the ratio of voltage to current to determine the resistance of a conductor or other device for that particular ratio. But you must remember that Ohm's Law is not a universal law, and only applies to linear or ohmic devices.


What is the formula for current ratio?

current ratio = current asset divided by current liability


Current ratio and liquidity ratio are same?

no they are not the same. the current ratio is current assets/current liabilities. but liquidity ratio or acid test ratio is current assets - stock/current liabilities. liquidity ratio shows you how able a business is to pay off its debt when stock is taken out of the equation.


What is the current ratio if cash is 8000 accounts payable is 2000 and stocks worth 2000?

Current ratio = current assets / current liabilityCurrent ratio = 10000 / 2000current ratio = 500%


current ratio?

this ratio analyzes whether a company can pay off its short-term obligations using its current assets. generally, the ideal current ratio for a company is considered to be 2.00. current ratio is calculated using the following formula:Current ratio = Current assets / Current liabilities