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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.

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4mo ago

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How does one calculate the receivables turnover?

The Receivables Turnover Ratio is an accounting ratio that is calculated by dividing the net receivable sales by the average net receivables. There are several online calculators that can help one determine this ratio located at websites like Mini Web Tool, DanielSoper, and CCD Consultants.


What are the important of accounting ratio?

Ratio is the part basically to compare the financial statement of one co with another...


How can one calculate the working capital ratio?

One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.


If current assets are 150 total assets are 350 current liabilities are 65 and total liabilities are 100 what is the current ratio rounded to two digits?

The Asset/Liability Ratio is one of the easiest to figure: Current Ratio = Current Assets/Current Liabilities According to your question that should be: Current Ratio = 150 / 65 Current Ratio = 2.31 (rounded to two digits)


What is the ratio of the length of a square?

To determine a ratio, you need two quantities, not just one.


What is current asset in accounting?

All those assest which are convertable within one accounting period is konow as current assest. such as, Cash, Bank Balance.Account, prepaid etc


How can one find the current ratio of a company?

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


How would you determine whether an asset is current asset or noncurrent asset?

I am taking a course in Accounting, and I was taught that an asset is current if it will be used up within one year. Long-term assets are those that last over 12 months.


How can one determine their debt to asset ratio?

To determine your debt to asset ratio, divide your total debt by your total assets. This ratio helps you understand how much of your assets are financed by debt.


How do you calculate primary current?

If it's a step up or step down transformer and you know the secondary side current, multiply the secondary current by the turns ratio. If you know the power in the secondary winding but not the current, divide the secondary power by the secondary voltage to get the secondary current and then multiply the secondary current by the turns ratio to get the primary current. The turns ratio is the number of turns on the secondary winding divided by the number of turns on the primary winding. For a step up transformer, the turns ratio will be greater then one. If it's a step down transformer, then the turns ratio will be less than one. If you don't know the turns ratio, divide the secondary voltage by the primary voltage to get the turns ratio.


How can one determine the average cost in accounting?

To determine the average cost in accounting, you add up all the costs and then divide by the number of items or units. This gives you the average cost per item or unit.


What is the current ratio formula?

Current Ratio = Current Assets / Current Liabilities Current Assets : all assets which is utilized in one fiscal year like cash, bill receivable, inventory etc Current Liablities vise versa of Current Assets.