--%>

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 : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : Evaluate the impact of a recent

    A 2000 word essay (maximum allowed 2,200) Accessing Learning Outcomes: Knowledge 1 and 2 Skills 1, 2, 3 and 5                 "Evaluate the impact of a recent healthcare initiative on nursing practice".<

  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

  • Q : Causes of decreasing of Gross profit

    What are the various causes of decreasing of Gross profit margin?

  • Q : Implement a user-defined matlab

    Your solution to the problem should be housed within a while loop, which allows the grader to test your solution repeatedly without having to re-execute the script, as shown in class. You should first display the purpose of the program, and then you should prompt the

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

  • Q : Stigmatizing obesity Should obesity be

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

  • Q : China emerged as the important

    Explain facts that China has emerged as the second most imperative recipient of the FDI after United States in recent years?