Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is not a correct way of calculating a liquidity ratio? A- Current Ratio = Total Assets / Total Current Liabilities B-

Which of the following is not a correct way of calculating a liquidity ratio?

A- Current Ratio = Total Assets / Total Current Liabilities

B- Liquidity Ratio = Liquid Assets / Short-term Liabilities

C- Operating Cash Flow = Current Liabilities / Operating Cash Flow

D- Quick Ratio = (Current Assets - Inventories - Prepayments) / Current Liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Finance questions

Question

Do you think this business would be successful? Why or why not?

Answered: 1 week ago