Short Term Solvency Ratio

Define the term Short Term Solvency Ratio?

E

Expert

Verified

Short-term Solvency Ratios is a ratio to measure the firm’s capability to meet short-term financial obligations. With this the firm will shun financial distress in short-run. There are two most significant Short-term Solvency Ratios:

A) Current Ratio
B) Quick Ratio

   Related Questions in Financial Accounting

  • Q : Stigmatizing obesity Should obesity be

    Should obesity be stigmatized? Answer yes or no, summarize the discussion and explain your position.

  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?

  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

  • Q : Different brooks of accounting Write

    Write down the different brooks of accounting?

  • Q : Explain international Fisher effect

    Explain and also derive international Fisher effect.

  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues

  • Q : Help Otobai Motor Company is currently

    Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%.

  • Q : Balance of payments deficit or surplus

    Describe how country may run an overall balance of payments deficit or surplus.

  • Q : Discuss to what extent does risk and

    to what extent does risk and term structure affects interest rates of financial instruments.

  • Q : Country and political risk What is

    What is country risk and how it is different from the political risk?

©TutorsGlobe All rights reserved 2022-2023.