What is a liquidity ratio?
Liquidity ratios help the firm to gauge on its ability to pay off its short-term debts. Generally, the higher the ration, the better is the vompany's position to pay off its debt. The most common liquidity ratios are: Current ratio & Acid-Test ratio.
FR
Related Accounting A Level answers
All answers ▸What are 3 accounting concepts used when preparing a set of accounts?
What are the main differences between financial and management accounting?
how is the income statement (I/S) related to the balance sheet (B/S)
What is the difference between accounts in balance sheet and income statement