ratios. (1 Viewer)

[Juliaan]

I got some notes that say the liquid ratio is

Current assets - inventories / Current Liabilities.

My school notes say that the current ratio (that works out liquidity) is

Current assets / Current Liabilities.

The question of my work says,

What is the liquidity ratio, show formula. Is it the first or second one that i should be using?

thanks.

 

[Juliaan]

ahh nvm, got it.

Its the second one, Current assets / Current liabilities.