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Example of Short-term Solvency
Current Ratio = Current Assets / Current Liabilities
= 5.38
This has increased from 3.97 in the previous year to 5.38 in the current year, indicating that the working capital of the company has increased and hence strengthening its liquid position.
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
= 4.57
This has increased from 3.47 in the previous year to 4.57 in the current year, indicating that there was some reduction in its Inventory as a part of it was sold off.
Investment with cum.div. Quotation Investment with cum.div. Quotation will be debited to the investment account at its full value. When the dividend is subsequently received it
Can anyone here help me in this question ?? Kindly tell how can we solve it Mr. “A” starts a new business. Before to start the business operation, he has purchased vehicle Rs. 1,
notes on Gaap principles
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