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Q. Show the Quick ratio or acid test?
Quick ratio = Current assets less inventories/Current liabilities (times)
This ratio measures immediate solvency of a business as it removes inventories out of the equation, which is the item least representing cash, as it needs to be sold. Normal is around 1: 1 however this varies within different industries.
a debit is used to record
The table below shows the summary of Balance of Payments in New Zealand. Note: Net values are given as credits + debits with correct signs in the balance of payment table.
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Q. Show the Quick ratio or acid test? Quick ratio = Current assets less inventories/Current liabilities (times) This ratio measures immediate solvency of a business as it re
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Current ratio (CA) or working capital ratio CA = Current assets/Current liabilities (times) Current ratio measures the short term solvency or liquidity; it signifies the ext
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Question What is the standard deviation of a portfolio which is comprised of $4,500 invested in stock S and $3,000 in stock T?
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