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What is Meant by 'Liquidity of Business'? - Accountancy

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प्रश्न

What is meant by 'Liquidity of Business'?

उत्तर

Liquidity of business refers to the ability of a business to meet its immediate and short term obligations.

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Liquidity Ratios
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
2015-2016 (March) Delhi Set 2

संबंधित प्रश्‍न

The current ratio of X. Ltd is 2:1. State with reason which of the following transaction would

i. Increase or ii. decrease or iii. not change the ratio

1. Included in the trade payables was a bills payable of Rs.9,000 which was met on maturity.

2. Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.


 A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. If the working capital is Rs 1,80,000, calculate the total Current Assets and value of stock.


 From the given information calculate the Stock turnover ratio. Sales Rs 2,00,000; G.P: 25% on cost; Stock at the beginning is 1/3 of the stock at the end which was 30% of sales. 


Which one of the following analysis is considered as a dynamic analysis?


Which of the following is not included in cash and cash equivalents?


Liquid assets = ______.


A decrease in Outstanding Expenses would result in:


A Company's Current Liabilities decreased from ₹ 12,00,000 to ₹ 9,00,000. What is the percentage of change in Current Liabilities?


______ is included in current assets while preparing balance sheet as per revised Schedule III but excluded from current assets while calculating Current Ratio.


A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50 000, having a Current Ratio of 2:1. What will be the company's revised Current Ratio after it collects ₹ 20,000 cash from its debtors of ₹ 25,000, the remaining debtors being bad?


State with reason whether Provision for Doubtful Debts is subtracted from Trade Receivables while computing Current Ratio.


Calculate Quick Ratio (up-to two decimal places) from the following information:

Particulars (₹)
Total Current Assets 90,000
Working Capital 60,000
Prepaid Expenses 30,000

What is the difference between Total Assets and Current Liabilities?


A company has a Quick Ratio of 1.8 : 1. Mention whether this ratio will improve/reduce/not change after it sells a machine worth ₹ 1,20,000 at a loss of ₹ 30,000.


Calculate the Current Ratio (up-to two decimal places) of Windlas Biotech Ltd. from the following extract of its Annual Report of 2021-22.

Particulars (₹) (in millions)
Opening Inventory of consumables (raw materials) 264.79
Closing Inventory of consumables (raw materials) 389.85
Opening Inventory of finished goods and work-in-progress 149.82
Closing Inventory of finished goods and work-in-progress 197.24
Current Assets (other than inventory of consumables and of finished goods and work-in-progress) 3,229.23
Current Liabilities 936.52

A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50,000, having a current Ratio of 2 : 1. What will be its revised Current Ratio after it endorses a bills receivable of ₹ 40,000 to one of its creditors?


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