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QUICK RATIO AND CURRENT RATIO The difference between Quick Ratio and Current Ratio is as follows: BASIS OF DIFFERENCE QUICK RATIO CURRENT RATIO RELATIONSHIP It establishes the relationship between Liquid assets and current liabilities. It establishes the relationship between current assets and current liabilities. ASSESSMENT It assesses the ability to meet current liabilities immediately. It…
QUICK RATIO FORMULA Quick Ratio, a type of liquidity ratio, may be defined as the relationship between quick or quick assets and current liabilities. An asset is said to be quick if can be converted into cash within a short period without loss of value. The quick ratio is also known as liquid ratio or…
QUICK RATIO Quick Ratio, a type of liquidity ratio, may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if can be converted into cash within a short period without loss of value. The quick ratio is also known as Liquid ratio or acid…
ABSOLUTE LIQUID RATIO FORMULA Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets. Although receivables, debtors and bills receivables…
ABSOLUTE LIQUID RATIO Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets. Although receivables, debtors and bills receivables are…
LIQUID RATIO FORMULA Liquid Ratio, a type of liquidity ratio, may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if can be converted into cash within a short period without loss of value. The liquid ratio is also known as Quick ratio or…
MEANING Liquid Ratio, a type of liquidity ratio, may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if can be converted into cash within a short period without loss of value. This ratio is also known as Quick ratio or Acid test ratio….
LIQUID RATIO INTERPRETATION Liquid Ratio, a type of liquidity ratio, may be defined as the relationship between quick or liquid assets and current liabilities. An asset is said to be liquid if can be converted into cash within a short period without loss of value. The liquid ratio is also known as Quick ratio or…
CURRENT RATIO FORMULA Current ratio explains the relationship between current assets and current liabilities. This ratio is also known as working capital ratio. This ratio is a measure of general liquidity and is most likely to make the analysis of the short term financial position or liquidity position of the firm. It is calculated by…
RATIOS Ratio is an arithmetical expression of relationship between two interdependent or related items. It may be defined as indicated quotient of mathematical expression. Accounting ratios are numerical relationship between two accounting variables. It indicates a quantitative relationship which is used for analysis and decision making. ACCORDING TO ACCOUNTANT’S HANDBOOK BY WIXON, KELL AND BEDFORD…
