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Accounting & Finance
 Online Tutoring : Forum : Homework Help - Economics & Business Studies : Accounting & Finance
Topic Topic: Accounting Post ReplyNew Question
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Bdrew
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Joined: 25 August 2006
Location: United States
Posts: 5
Posted: 25 August 2006 at 3:09am | IP Logged Quote Bdrew

  1. Discuss how the current ratio formula helps in determining a company’s financial solvency. Give an example.

 

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Alfaina
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Joined: 06 September 2007
Location: Malaysia
Posts: 2
Posted: 06 September 2007 at 2:05pm | IP Logged Quote Alfaina

current ratios= current assets/current liabilities

current ratio indicates how well the company can manage the asset to meet the obligation of debt.how well the company can manage their assets to produce the revenue to cover their debt...the higher the better

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