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10 Cards in this Set
- Front
- Back
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Ratio analysis |
Used to analyze the financial position of a business |
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Ratio |
A comparison of two numbers or quantities by using division |
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Antecedent |
First term in a ratio |
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Consequent |
Second term in a ratio |
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Current ratio and quick ratio |
Ratios that measure the liquidity of assets |
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Liquidity of assets |
Turning assets into cash |
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Current ratio formula |
Current assets divided by current liabilities |
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Current assets |
Assets that can be quickly converted to cash |
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Current liabilities |
Debts due within one year |
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Minimum current ratio for the business to be financially sound |
2.00 |
