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Subject 5. Uses and Analysis of the Balance Sheet
e following ratios takes a slightly different view of cash or near-cash items. Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. A <span>current ratio of less than 1 indicates the company has negative working capital. Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inve
Subject 5. Uses and Analysis of the Balance Sheet
e following ratios takes a slightly different view of cash or near-cash items. Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. A <span>current ratio of less than 1 indicates the company has negative working capital. Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inve
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| status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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