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  2. Current ratio: What it is and how to calculate it - AOL

    www.aol.com/finance/current-ratio-calculate...

    The ratio is calculated by dividing current assets by current liabilities. An asset is considered current if it can be converted into cash within a year or less, while current liabilities are ...

  3. Current liability - Wikipedia

    en.wikipedia.org/wiki/Current_liability

    The classification of liabilities also plays a role in determining financial ratios, such as the current ratio—calculated as current assets divided by current liabilities. A higher current ratio indicates that the business has sufficient current assets to cover its obligations over the coming year, suggesting stronger liquidity. [1] The ...

  4. Accounting liquidity - Wikipedia

    en.wikipedia.org/wiki/Accounting_liquidity

    The current ratio is the simplest measure and calculated by dividing the total current assets by the total current liabilities. A value of over 100% is normal in a non-banking corporation. However, some current assets are more difficult to sell at full value in a hurry.

  5. Current asset - Wikipedia

    en.wikipedia.org/wiki/Current_asset

    On a balance sheet, assets will typically be classified into current assets and long-term fixed assets. [2] The current ratio is calculated by dividing total current assets by total current liabilities. [3] It is frequently used as an indicator of a company's accounting liquidity, which is its ability to meet short-term obligations. [4] The ...

  6. What are assets, liabilities and equity? - AOL

    www.aol.com/finance/assets-liabilities-equity...

    Per the accounting equation: assets = liabilities + equity. Remember, accounting is all about balance — they call it “balancing your books” for a reason. ... ($7,000) from the current value ...

  7. Balance sheet - Wikipedia

    en.wikipedia.org/wiki/Balance_sheet

    The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities. [4] Another way to look at the balance sheet equation is that total assets equals liabilities plus owner's equity.

  8. Asset - Wikipedia

    en.wikipedia.org/wiki/Asset

    Equity = AssetsLiabilities. Assets are reported on the balance sheet. [11] On the balance sheet, additional sub-classifications are generally required by generally accepted accounting principles (GAAP), which vary from country to country. [12] Assets can be divided into current and non-current (a.k.a. fixed or long-lived). Current assets ...

  9. Current ratio - Wikipedia

    en.wikipedia.org/wiki/Current_ratio

    The current ratio is an liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It is the ratio of a firm's current assets to its current liabilities, ⁠ Current Assets / Current Liabilities ⁠. The current ratio is an indication of a firm's accounting liquidity.