B Com Exam > B Com Questions > What assets are not to be considered in deter...
Start Learning for Free
What assets are not to be considered in determining current ratio and liquid ratio and explain why?
Most Upvoted Answer
What assets are not to be considered in determining current ratio and ...
Both the current ratio and quick ratio are liquidity ratios that measure a company's ability to pay off its short-liabilities with its short-term assets. The ratios are used to measure a company's short-term liquidity or its ability to generate enough cash to pay off all debts should they become due at once. Although unlikely, the ability of a company to liquidate assets quickly to meet its debt obligations is a measure of financial health.
Current Ratio
The current ratio measures a company's ability to pay short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). As a result, the current ratio is comprised of the following short-term assets and liabilities:
Current assets are located on the balance sheet and represent the value of all assets that can reasonably expect o be converted into cash within one year. The following are examples of current assets:Quick ratio. In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio which measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. ..
|
Explore Courses for B Com exam
|
|
Top Courses for B ComView all
Question Description
What assets are not to be considered in determining current ratio and liquid ratio and explain why? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What assets are not to be considered in determining current ratio and liquid ratio and explain why? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What assets are not to be considered in determining current ratio and liquid ratio and explain why?.
What assets are not to be considered in determining current ratio and liquid ratio and explain why? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What assets are not to be considered in determining current ratio and liquid ratio and explain why? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What assets are not to be considered in determining current ratio and liquid ratio and explain why?.
Solutions for What assets are not to be considered in determining current ratio and liquid ratio and explain why? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of What assets are not to be considered in determining current ratio and liquid ratio and explain why? defined & explained in the simplest way possible. Besides giving the explanation of
What assets are not to be considered in determining current ratio and liquid ratio and explain why?, a detailed solution for What assets are not to be considered in determining current ratio and liquid ratio and explain why? has been provided alongside types of What assets are not to be considered in determining current ratio and liquid ratio and explain why? theory, EduRev gives you an
ample number of questions to practice What assets are not to be considered in determining current ratio and liquid ratio and explain why? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup