Discussion:

The ability to eomert assets inte cash is called Nquidity, while the ability of a business to pay its debcs is caled solvency. Two financial measures for evaluating a business's short$-$term figuidity and solvency are working capital and the current ratio.

Original Post:

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Answer the followire questions and support your responses with detail.

What is the formula for warking capital? What does it measure?

What is the formula for the current ration? What does it measure?

Is there a third ratio? What is the fommil and what does it measere?