--%>

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 : Essay topics related to Religion I have

    I have some problem related to Essay topics which are related to Religion which are illustrated below: Topic A:What are the qualities of the ‘perfect&rsq

  • Q : Explain Return on Equity or ROE Return

    Return on Equity (ROE): The amount of net income returned as a percentage of share-holders equity. The return on equity measures a corporation's profitability by revealing how greatly profit a company produces with the money share-holders encompass in

  • Q : Causes of current account deficits

    United States has experienced constant current account deficits since early 1980s. List some of the major causes of the deficits? What could be the consequences of these constant U.S. current account deficits?

  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

  • Q : Interbank currency trading Explain, why

    Explain, why do most interbank currency trading globally include the U.S. dollar?

  • Q : Future spot exchange rate Describe

    Describe about the conditions under which forward exchange rate may be an unbiased predictor of the future spot exchange rate.

  • Q : Non-tradable asset Assume there is

    Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets.  How will non-tradable asset be priced?

  • Q : Discuss to what extent does risk and

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

  • Q : Explain Cost of goods Explain Cost of

    Explain Cost of goods and how they are used in estimating gross profit and net profit of the business?

  • Q : Holding Period Describe the term

    Describe the term Holding Period?