## What is the formula for liquid capital ratio?

Current Ratio = Current Assets/Current Liability = 11971 ÷8035 = 1.48. Quick Ratio = (Current Assets- Inventory)/Current Liability = (11971-8338)÷8035 = 0.45….Example:

Particulars Amount
Total Current Assets 11917
Accounts Payable 4560
Outstanding Expenses 809
Taxes Payable 307

What is the formula for calculating cash ratio?

How Do You Calculate Cash Ratio? The cash ratio is calculated by dividing cash by current liabilities. The cash portion of the calculation also includes cash equivalents such as marketable securities.

How is quick ratio calculated?

There are two ways to calculate quick ratio:

1. QR = (Current Assets – Inventories – Prepaid Expenses) / Current Liabilities.
2. QR = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities.

### What is the formula for current assets?

Current assets = Cash and Cash Equivalents + Accounts Receivable + Inventory + Marketable Securities.

What is standard liquid ratio?

Answer: 1:1. Explanation: It is defined as the ratio between quickly available or liquid assets and current liabilities. Quick assets are current assets that can presumably be quickly converted to cash at close to their book values.

What is current and quick ratio?

Current ratio is defined as the ratio that calculates the proportion between the current assets and current liabilities. Quick ratio is defined as the ratio that calculates the proportion of most liquid current assets and current liabilities. Also known as. Working capital ratio.

## What is the formula of current liabilities?

Mathematically, Current Liabilities Formula is represented as, Current Liabilities formula = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt.