Ask Question
18 November, 21:31

An investor knows the total assets and total liabilities of a company, but they are not sure how much of the assets and liabilities are current versus long-term. Based on this, the investor could calculate

+5
Answers (1)
  1. 18 November, 21:35
    0
    The investor must find Current Ration and Quick Ratio.

    Explanation:

    The reason is that the current ratio tells that how much of the current assets are financed from the current liabilities. This gives a better understanding of the financing of the working capital through current liabilities. The quick ratio does the same but the effect of the inventory is eliminated.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An investor knows the total assets and total liabilities of a company, but they are not sure how much of the assets and liabilities are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers