Bank overdraft comes under which ratio current ratio or liquid ratio karan's acer liquid assets
Answers
Answered by
0
a. Current Ratio : It shows the relationship between current assets and current liabilities. It is also known as working capital ratio. The ideal current ratio is 2:1.
b. Liquid Ratio : It shows the relationship between liquid assets and current liabilities. It is also known as acid test ratio or quick ratio. The ideal liquid ratio is 1:1. The term liquid assets means the assets which are easily convertible into cash or cash equivalents very shortly.
It come under both.
Similar questions