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This Financial Statement Consists of Three Parts Part I, General Statement; Part II, Inventory of Assets and Debts; and Part III Form

This Financial Statement Consists of Three Parts Part I, General Statement; Part II, Inventory of Assets and Debts; and Part III Form

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this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition comp okay we're still looking at the various different ratios you could be asked to calculate in the previous lecture I went to all the profitability measures now we will look at the quiddity and risk so first of all liquidity now what we're looking here at is how easy it is for the business to be able to pay its bills in the short term you know you can have a business that's very profitable but if it runs out of cash then there's always the danger that they may be forced to close carry on and there are several ratios here the most important one is something called the current ratio and you've got the formula there it's the current assets divided by current liabilities so let's just check it in both years in 2010 the current assets are five or five five three the current liabilities two three one at six so i

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