L4M8 Exam Dumps | Use the balance sheet below to work out the correct ratio for coffee Time and explain whether the company

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Question 14/35

Use the balance sheet below to work out the correct ratio for coffee Time and explain whether the company appears to have enough assets to cover it liability.

Correct Answer:

The current ratio is one of the two was to determine organizations liquidity (how quickly its assets can be converted into cash)

A current ratio of 1 shows that the organization has enough assets to repay (cover) it liability Buyers can be encouraged to deal with these suppliers after if they considered proven and strong in other areas.

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