The ratio of current assets to current liabilities is known as:
Current ratio
The ratio of current assets to current liabilities is formally known as the Current Ratio . While the current ratio *is* a liquidity ratio, the question asks for the specific name of the ratio that compares current assets to current liabilities, which is the Current Ratio.
Important Questions from Valuation
Calculate the year’s purchase for a property of useful life of 30 years and rate of interest of 5% per annum.
A building has been purchased by a person at a cost of Rs. 25,000. The useful life of the building is 40 years and the scrap value of the building is Rs. 3,000. Calculate the annual sinking fund (Rs.) at the rate of 5% interest. (Take 1.0540 = 7.04)
The junk or demolition value of a structure, calculated at the end of its utility span, that has lost all of its structural strength and is near to its demolition is called:
X is the measure and adjustment of price levels for goods and services across a broad sector of the economy, where X is:
In which of the following cases, valuation is not required?
