Quick Ratio (Acid-Test Ratio) is ratio between the most liquid assets and Current Liabilities. It deals with the firm’s most liquid assets.
Posts tagged as “Liquidity Ratios”
Current Ratio is ratio between Current Assets and Current Liabilities. It compares Current Assets with Current Liabilities of the business.
Internal Users and External Users of Final Accounts will find Ratio Analysis of great help when making business decisions.
Different types of ratios are used to analyze information from Profit and Loss Account (P&L Account) and Balance Sheet to judge financial performance.
All business organizations need accounting systems. This makes finance one of four core business functions.