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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.

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14y ago

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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.


How does the current ratio relate to the other liquidity ratios?

The current ratio is a key liquidity ratio that measures a company's ability to cover its short-term liabilities with its short-term assets. It complements other liquidity ratios, such as the quick ratio and cash ratio, by providing a broader view of liquidity. While the current ratio includes all current assets, the quick ratio excludes inventory, and the cash ratio focuses solely on cash and cash equivalents. Together, these ratios offer a comprehensive assessment of a company's short-term financial health and liquidity position.


What is the purpose of the liquidity ratio?

Liquidity ratios measure the availability of cash to pay debt


What is the financial ratio used to assess a company's liquidity?

The quick ratio which equals total assets/total liabilities Answer: Liquidity Ratios are the ratios that can be used to measure the liquidity of a company. As a rule of the thumb, all companies must have good liquidity ratios. The four main ratios that fall under this category are: 1. Current Ratio or Working Capital Ratio 2. Acid-test Ratio or Quick Ratio 3. Cash Ratio 4. Operation Cash-flow ratio


What is current Statutory Liquidity Ratio?

25%


Full form of SLR?

Statutory liquidity ratio


What is CLR rate of bank?

cash liquidity ratio


What is the slr ratio for bank?

SLR stands for Statutory Liquidity Ratio. Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank. The statutory liquidity ratio is a term most commonly used in India.


What is current Statutory Liquidity Ratio of India as on 1st feb 2011?

statutary liquidity ration currnetly is 25%


What are the types of liquidity ratios?

1) Statutory Liquid Ratio 2) Cash Reserve Ratio


What are the ratios in liquidity?

liquidity ratios include current ratio (which is current assets/current liabilities) and acid test (which is current assets- stock/current liabilities.) liquidity ratio's shows how good a business is a paying off its debts. hope this helps.


What ratios are critical in determining going concern?

liquidity ratio's