Financial Accounting
What is liquidity in financial accounting?
A company has a current ratio of 1.5 and positive working capital. What does this indicate about its ability to cover current liabilities?
If a company has current assets of \$400,000 and current liabilities of \$300,000, what is the current ratio?
What alternative uses might a company consider for surplus assets resulting from high working capital?
Why might a company with positive working capital still face financial challenges?
Why are ratio calculations considered simple in exam settings?
A company has a current ratio of 0.9. What does this suggest about its liquidity?
A company has current assets of \$500,000 and current liabilities of \$400,000. Calculate the current ratio and working capital.
What does a current ratio below 1.0 indicate about a company's financial health?
How is working capital calculated?
