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Q. Show the Quick ratio or acid test?
Quick ratio or acid test
Quick ratio = Current assets less inventories / Current liabilities (times)
This ratio measures the immediate solvency of a business as it removes the 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.
The group consolidated financial results would normally be effected, if an internal buyer uses their autonomy and makes a decision to buy outside the group, rather than buy interna
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Two useful approaches to assess feasibility in financial terms are: Ans) Funds flow and break-even examines
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It is the times in the life of a business or a person when fundamentals are about to be change.
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