Difference between revisions of "Liquidity ratios"
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Liquidity ratios]]. The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts. | :[[Liquidity ratios]]. The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | : | ||
==Related concepts== | ==Related concepts== | ||
Revision as of 17:43, 1 November 2019
Liquidity ratio is the two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Liquidity ratios. The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
