Current ratio and liquid ratio
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Current ratio means the ratio will flow like and liquid ratio means ratio will flow like liquid.
Hope it helps u.
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Hope it helps u.
Pls mark me as the brainliest
Answered by
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Current ratio = Current assets / Current Liablities
Lquid ratio = Quick assets / Current Liablities
Explanation:
Current assets = cash + cash equivalents + accounts receivable + stock + marketable securities + pre-paid liabilities
Quick assets = Current assets - Stock - Pre-paid liabilities
Current liabilities = accounts payable + short-term debt + dividends + notes payable
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