111) Current assets are assets that the business plans to sell, consume, or convert to cash within 12 months or less.
112) Current assets are typically more liquid than long-term assets and therefore harder to convert into cash.
113) Long term assets are those debts payable in longer than 1 year or the entity's operating cycle which ever is longer.
114) The term liquidity refers to long term items such as a building.
115) From a traditional analysis stand point a current ratio of 2.00 is considered ideal.
116) The debt ratio is calculated as follows: total assets divided by total liabilities.
117) One of the most widely used financial ratios is the current ratio.
118) The current ratio is calculated as follows: current liabilities divided by current assets.
119) A multi-step income statement typically includes the calculation of gross profit.
120) A low debt ratio is preferable to a high debt ratio, whereas a high current ratio is preferable to a low current ratio.