Accountancy, asked by aliasarkhan030, 1 month ago

Write short note on 1 Current ratio 2 Quick ration​

Answers

Answered by hardikpadwal1208
0

Answer:

1) Current ratio : - The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

2) Quick ratio : - The quick ratio, also known as the acid-test ratio, measures the ability of a company to pay all of its outstanding liabilities when they come due with only assets that can be quickly converted to cash. These include cash, cash equivalents, marketable securities, short-term investments, and current account receivables.

Similar questions