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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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8mo 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


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.


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


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%


Is the financial ratio used to assess a company's ability to pay bills that are or will be due in the near future?

Yes, the financial ratio used to assess a company's ability to pay its short-term obligations is known as the liquidity ratio. Common examples include the current ratio and the quick ratio, which evaluate a company's current assets against its current liabilities. These ratios help determine whether a company can meet its financial obligations as they come due.