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MakcuM [25]
1 year ago
10

Which of the following is not a correct way of calculating a liquidity ratio?

Business
1 answer:
aleksley [76]1 year ago
3 0

Option C -Operating Cash Flow = Current Liabilities / Operating Cash Flow s not a correct way of calculating a liquidity ratio.

Liquidity ratios are a measure of a company's ability to settle its short-term payments. A company has the ability to quickly exchange its revenues and is using them to pay his obligations is dictated by its liquidity ratios. The potential to pay back debts and keep engaged on installments is simpler the better the ratio. Since this can vary by industry, and current ratio of 1.0 usually signals that a group's debt do not exceeding its liquid assets. In enterprises in which there is a quicker product changeover and/or shorter payment cycles, ratings below 1.0 may be acceptable.

Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability.

Learn more about Liquidity ratios here:

brainly.com/question/15395374

#SPJ4

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3 years ago
The larger the coefficient of price elasticity of demand for a product, the: larger the resulting price change for an increase i
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The correct answer is smaller the resulting price change for increase or rise in supply.

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When the coefficient of price elasticity of demand for the product is larger, then it will result in the smaller price change for the rise or increase in the supply.

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When preparing bank reconciliation,some items are added while some are subtracted depending on which balance is started with.

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Cash balance as per ledger                                                       4,583

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Less: Bank service fee                                                             <u>    (75)</u>

Adjusted cash balance                                                               4,532

Add back outstanding check                                                      <u>2,793</u>

Correct cash balance as at end of March                                 <u> 7,325</u>

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