What is meant by ‘Liquidity of Business’? Post category:Accountancy Reading time:1 mins read SOLUTION ‘Liquidity of Business’ refers to the firm’s ability to meet its current obligations, i.e., short-term liabilities. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive one limitation of ratio analysis. Next PostWhat is Current Ratio? You Might Also Like How will you show the following items in the Balance Sheet of a Company; (i) Calls in Arrears; (ii) Calls in Advance. September 30, 2022 Assuming That the Debt-to-Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio: (i) Issue of new shares for cash. (ii) Conversion of debentures into equity shares (iii) Sale of a fixed asset at profit. (iv) Purchase of a fixed asset on long-term deferred payment basis. (v) Payment to creditors. August 12, 2022 Give two Objectives of Ratio Analysis. October 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
How will you show the following items in the Balance Sheet of a Company; (i) Calls in Arrears; (ii) Calls in Advance. September 30, 2022
Assuming That the Debt-to-Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio: (i) Issue of new shares for cash. (ii) Conversion of debentures into equity shares (iii) Sale of a fixed asset at profit. (iv) Purchase of a fixed asset on long-term deferred payment basis. (v) Payment to creditors. August 12, 2022