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Accounting > Financial Ratios - Liquidity Ratios > Flashcards

Financial Ratios - Liquidity Ratios Flashcards

1
Q

Liquidity ratio

A

Current assets / current liabilities

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2
Q

Cash ratio

A

Cash / current liabiilties
If it’s over 1, then business is performing well

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3
Q

Current ratio

A

Assets / liabilities

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4
Q

What are liquid assets

A

Cash, short-term investments, accounts receivable

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Accounting (15 decks)

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