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Section A topic 2
Financial Ratio
| Question | Answer |
|---|---|
| Working Capital | Currents Assets - Current Liabilities |
| Working Capital Ratio | Net Working Capital / Total Asset |
| Current Ratio | Current Assets / Current Liabilities |
| Quick (Acid-Testing) Ratio | Cash + Marketable Securities + Accounts Receivables + Current Liabilities |
| Cash Ratio | Cash + Marketable Securities / Current Liabilities |
| Cash Flow Ratio | Operating Cash Flow / Current Liabilities |