Briefly explain, in your own words, what each of the following ratios helps the analyst to assess
Question:
Briefly explain, in your own words, what each of the following ratios helps the analyst to assess and whether the analyst would generally perceive an increase in the ratio as a positive change.
a. Current ratio
b. Quick ratio
c. Accounts receivable turnover
d. Inventory turnover
e. Accounts payable turnover
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Ratio helps the analyst assess An increase is generally perceived as a Whether current assets ...View the full answer
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Related Book For 
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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