Financial Management What will your outlook towards
maintenance of liquid assets to ensure that the firm has
adequate cash in hands to meet its obligation at all times?
Answer Posted / sreeram
very good question,
First you need to check is the company having adaquate
working capital for the day to day maintenace for that make
sure the company having Current Ration 2:1
Current Ratio = Current Assets/ Current Liabilities.
If it is more specific fr liquidity tehn check with Quick
ratio/Liquid Ratio
Liquid ratio = Quick Assets/ Quick Liabilities.Idle qould be
1.33:1
Quick Assets = Current Assets - Stock
Quick Liabilities would be Current Liabilities - Bank OD.
This would be sufficient.
| Is This Answer Correct ? | 4 Yes | 0 No |
Post New Answer View All Answers
What is meant by public accounting?
how to reduce the interesting giving to debts ?
what is current rate of excies duty for a manufacturing company?
What are the three factors that can affect your cash flow and business profitability?
Can share warrants issued by the company be considered as potential equity shares? If yes, then will it be considered for calculating dilutive EPS?
Our is a banking Activity, one person is supplying printing advertisement sheet of our product, whether he is liable to deducte TDS @ 1%
Horizontal balance sheet versus Vertical balance sheet
What do you find most satisfying about this job?
What action could be taken by you and your manager to improve your performance in your current position?
Why Company maintain's books of account?
lic (life insurance corporation)how much he or she as to deduct income tax on his gross annual salary. please give with examples
How to create a liability for Service Tax in SAP
Explain how you can adjust entries into account?
There are two Business areas 1100 and 1200. I need to pick 1200 b.areaonly While enter the transaction? could any one please post the answer for this.
what is the defination of mat n calculation of mat... with example this is applicable in company or firm, pl. discribe me.....thanx ashok