Ask Question
BusinessBusiness
30 June, 02:12

Ratios that measure the short-term ability of the company to pay its maturing obligations are

+4
Answers (2)
  1. 30 June, 04:26
    0
    The answer is Liquidity Ratios.
  2. 30 June, 05:16
    0
    The answer is Liquidity Ratios.

    Liquidity Ratios are ratios that measures the short-term ability of the company to pay its maturing obligations, and also to meet the sudden need for cash. It can be current ratio, quick ratio or cash ratio.

    Current Ratio is dividing the current assets by current liabilities.

    Quick Ratio is subtracting first the inventories from current assets, then divide the answer by the current liabilities.

    Cash Ratio is adding first the marketable securities (if there are) to cash, the divide its answer by the current liabilities.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Ratios that measure the short-term ability of the company to pay its maturing obligations are ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
ABC Computer Company had the following information from the Income Statement. The company sold 200 computers (all the same model) : Sales $160,000 Cost of Goods Sold 80,000 Total Expenses 20,000 What is the unit cost per item (computer) ?
Answers (1)
Which of the following describes the product portfolio under Amina? a. Sleekline-question mark, Stallion-star, Thunderbird-cash cow b. Sleekline-question mark, Stallion-cash cow, Thunderbird-dog c.
Answers (1)
What are informal groups in workplace
Answers (1)
What is a commodity? A. Something that producers are unable to sell to consumers B. A resource that is available in unlimited quantities C. An exchange between a producer and a consumer D. Something of value that can be bought, sold, or traded
Answers (1)
When you finance a project partly with debt, you should still view the project as if it were all equity-financed, treating all cash outflows required?
Answers (2)
New Questions in Business
The balanced scorecard approach uses only financial measures to evaluate performance. uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility.
Answers (1)
In the open economy of Sildavia, government spending during 2005 was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion.
Answers (1)
Ridiculousness, Inc., has sales of $49,000, costs of $22,600, depreciation expense of $2,150, and interest expense of $1,900. If the tax rate is 21 percent, what is the operating cash flow, or OCF?
Answers (1)
A common measure of liquidity is a. the accounts receivable turnover. b. dividends per share of common stock. c. the asset turnover ratio. d. the profit margin.
Answers (1)
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant.
Answers (1)
Home » Business » Ratios that measure the short-term ability of the company to pay its maturing obligations are
Sign Up Forgot Password?