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.
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All answers ▸Raya has decided to depreciate her fixed assets. She has a printing press which was worth £500 at cost and is estimated to depreciate in value at 15% a year, Reducing balance method. Calculate the NBV at the end of year 3. Showing your working out.
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Toyosi paid £6,600 for insurance during the year ended 31/03/2014. The "insurance prepaid" account showed a balance of £390 as at 01/04/2013 and a balance of £450 as at 31/03/2014. Calculate the insurance expense for the year ended 31/03/2014.