What is Liquidity Ratio?

Answer Posted / shruti

liquidity ratio mean to find out the company ability to pay short term obligation.It is the ratio between current assets by current liabilities.which to check the financial position of company in relation to current assets,the abilities to pay short term liabilities.the sound ratio should in 2:1.which means company financial liquidity position is sound.

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is the monetary policy of RBI and what are the various instruments used to control it?

591


What Is Swift?

706


How Will The Stress Test Results Be Factored Into The Srep?

659


When was NABARD established?

760


State the difference between Sales Tax and VAT.

659






What Are Open Market Operations?

669


What is a deferred tax asset?what is bank? What are the types of banks?

581


differentiate between revenue deficit and fiscal deficit?

705


What is fixed assets/ capital employed ratio?

590


What do you know about SWOT Analysis?

633


What is composite cost of capital? Explain the process to compute it?

636


how to invest in mutual fund? what is bita & how it is calculated?

2368


Tell me something about icfai?

636


What is Unlimited Company?

618


Is The Installation Labor For A New Asset Expensed Or Included In The Cost Of The Asset?

692