Question

What are the components of current ratio?

Answer 1

Acid-test ratio (or quick ratio): compares a company's easily liquidated assets(including cash, accounts receivable and short-term investments, excluding inventory and prepaids) to its current liabilities. Operating cash flow ratio: Compares a company's active cash flow from operations to its current liabilities.

Answer 2

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Here's your Answer..

Acid-test ratio (or quick ratio): compares a company's easily liquidated assets (including cash, accounts receivable and short-term investments, excluding inventory and prepaids) to its current liabilities. Operating cash flow ratio: Compares a company's active cash flow fromoperations to its current liabilities.