ratios. (1 Viewer)

Juliaan

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I got some notes that say the liquid ratio is

Current assets - inventories / Current Liabilities.

My school notes say that the current ratio (that works out liquidity) is

Current assets / Current Liabilities.

The question of my work says,

What is the liquidity ratio, show formula. Is it the first or second one that i should be using?

thanks.
 

Juliaan

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ahh nvm, got it.

Its the second one, Current assets / Current liabilities.
 

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