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Liquidity Ratios - Current Ratio and Quick Ratio (Acid Test Ratio)

The Organic Chemistry Tutor 515 views

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Comment from : @TheOrganicChemistryTutor

But why did you subtract the first liquid assets and summed up the second
Comment from : @NIVIOUSMWELWA

Thanks sir I thought you teach maths 😂😂thanks sir
Comment from : @Zandile-p8i

Thanks ! Nice & easy! ❤
Comment from : @gemrockstoneinyeshua7615

I started off studying chemistry but now I study accounting, didn't expect to be learning from the same guy all these years later
Comment from : @theredtechnician

Ideal current ratio is 2:1 brIdeal quick ratio is 1:1brThese ratios are mostly expressed as pure ratio
Comment from : @yoo562

Thanks for the analysis! 🔍 Need some advice: 🙏 I have these words 🤨 (behave today finger ski upon boy assault summer exhaust beauty stereo over) What should I do with this? 🤷‍♂️
Comment from : @AdalbaroObinna

NVO
Comment from : @RobFrank22

Good video
Comment from : @pubgmobileclashroyale4725

simple and good
Comment from : @ashokkverma2074

Maybe I missed something (it's morning and I haven't had my coffee? 😁 ) If inventory is not considered a liquid asset and normally isn't included in the Quick Ratio, why is it used in the quick ratio in this example?
Comment from : @sonicfrogdotnet

wow, from STEM to Accounting
Comment from : @ttyl60

The explanation is very wonderful Thank you It was useful, better than textbooks
Comment from : @sharouqalshekaili9964

Thanks
Comment from : @iam_paulsaurabh

I need his names to actually concentrate on his work only to good
Comment from : @hamudanmuyanja9861

Excellent lecturer
Comment from : @hamudanmuyanja9861

This dude is inspirational How many subjects does he teach?😂
Comment from : @markmillington605

Thank you for this, I been struggling answering my project in financial Management subject
Comment from : @janelynbagalihog4689

Bruh, this guy teaches everything
Comment from : @the_hasnat

bro can even teach accounting mygosh😭😭😭💜💜💜
Comment from : @reynloez

I did not expect to find this from my favourite youtube tutor, thank you
Comment from : @ray-zin

how to know when you will add all the liquid assets bcs in the first example, you subtracted all the liquid assest
Comment from : @kclairemanalang

how to know the amount of assets and liabilities using the current and quick ratio?
Comment from : @mikebustamante412

what if cr is 10 or more? br?
Comment from : @ofersasson

Taylor
Comment from : @MalcomTaylor-r8m

Kindly do more videos on Accounting Ratios we're having problems in schools
Comment from : @franzphiri5088

Bro teaches everything
Comment from : @shizebtw7082

It says 'ratio' but you have not expressed your answer as a ratio
Comment from : @AnonyMous-un3df

Thank You
Comment from : @michaellorde8404

bro you are the best ❤
Comment from : @soumyadeepsarkar2119

Why are we subtracting Prepaid Expense, and not only Inventory i thought we only subtract inventory only on Acid test ratio?
Comment from : @wisemanemk

You are very good and patient teacher Thank you for the simplification
Comment from : @CollinsNwonuigwe

hibrmy teacher also told me that there is in profitability ratio called acid test ratiobrcan you make a video for it explaining why it is considered one of the profitability ratios and what is the equation of it plsssssbri have an exam after 1 weekbri would really appreciate it
Comment from : @abdullahashraf7706

This video was helpful to me thank u so much
Comment from : @elizabethroselim4600

Sir if there is working capital so what will do
Comment from : @funnyvideoskaaada9680

Thank you ! Very helpful as I’m studying for an accounting exam Perfect pace of speaking and really helpful at making me understand ! 😊
Comment from : @NS-tz3nt

I NEVER THOUGHT YOU COULD EXPLAIN EVEN THIS INDEED GURU YOU ARE THE BEST TUTOR EVER EXISTED ON EARTH IN MY OWN OPINION CHEERS SIRbr😀😀😀😀
Comment from : @isaacchinyama4617

thx for the help, taking series 7 exam soon!
Comment from : @zseelbach

Dude can teach advance maths and teach accounting! Bro you dwag eh respect ❤❤
Comment from : @rick-bp7bp

Beloved tutor can I have more accounting videos please!
Comment from : @sharonmitiwe7391

Inventory is current asset right?
Comment from : @karanushree97

Aren't lnventories same as current assets?
Comment from : @rishikeyyadav5717

Quick ratio and acid test ratio same?
Comment from : @khadijamim9487

why do not we add inventory and prepaid in the current asset when we calculate the current asset ratio?
Comment from : @koketsomachubeng5049

Thanks for your help me teacher 🤝👍💪👏
Comment from : @januariosoares3605

Well simplified, thank you
Comment from : @johnlokaala3623

Thank you so much😭😭❤❤I learnt a lot from this video
Comment from : @lilithantsuke-ntsuke9557

he teaching business too? Fuiyoh
Comment from : @Andrew-vm2nn

the 05 tho dont you have to round it off to one?
Comment from : @romariodickson6702

Fk you bruh this shit helps no one
Comment from : @ScoobySnacks1809

🐐
Comment from : @kr-rp7nd

thank you! this video cleared my concept
Comment from : @iftekharazamiftee4298

Sometimes textbooks can give you too much information and overload you This guy helps me with computing and business and explains problems with my understanding in minutes indeed this guy is a teacher or should be as he is extremely talented
Comment from : @mikey187lfc

This is very slow I had to watch at 2x speed
Comment from : @TrojanHamster

Wonderful! You have helped me alot in my precalc and accounting class this semester !!! Thanks so much !!!
Comment from : @kierajubilee653

Keep in mind having a high QR does not always mean a good thing Companies generally should always be re-investing and not have too much cash and liquid assets on hand Also, having a number lower than one is not really always a bad thing, and it should be regarded with the type of company and other ratios, including current ratio in mind; as some companies might generally be very asset-heavy but not super liquid (ex: airline, cruise companies, etc) and this does not mean they are doing bad or they are in a bad economic state brbrJust thought to add in case anyone is looking for a deeper layer of knowledge
Comment from : @tahaesfahaninejad3798

if inventory is not a liquid asset, why it is included?
Comment from : @richardrichmaniquis7594

oh man its a luck i found you
Comment from : @joelreji2117

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Comment from : @arash6542

Damnn this guy should start his own udemy courcebrExplained things better than the people on there
Comment from : @versacePourHomme786

Thank you
Comment from : @Tendo_27

You are such a life saver 🥺🥺🙏🙏🙏
Comment from : @mercymalupande6246

He's good in Math,Physics,Economics and Accounting!!! how??😥🔥
Comment from : @amandajooste3063

I'm pretty sure Mark Wahlberg taught me basic accounting principles just now Thanks my guy
Comment from : @1177ash1177

Thanks for sharing your knowledge
Comment from : @quinth1245

Interesting!
Comment from : @steev7094

A lifesaver for an online distant learning MBA student with zero accounting background like me
Comment from : @AlforceZero

In the last question how can we tell which is a current asset and a liquid asset?
Comment from : @kingsmanw

First one from Kenya 😆
Comment from : @xikmadtv9165

Yeah thank you so much for this video I'm really understand the CR & QR with the simple example and the way of you explained Thanks you once again
Comment from : @lenintamilmani4428

My new hero!!
Comment from : @monicodoctor7980

Hi, i ask the current ratio and quick ratio is Liquidity Ratios right?
Comment from : @jerwinddronervlog

As im writting my assignment on ration analysis Thanks
Comment from : @Art4Fun937

I like him from his voice so calm, patient 🥰 a good math teacher help me to understand math easily
Comment from : @todashistorias

Current Ratio deals with time and it is asking are making money today?brThe Quick Ratio is asking are making money? If not, do you have the assets to pay for the company debt?
Comment from : @charlesjojobesitan5504

I switched from engineering to business and your videos helped in both majors what a hero!
Comment from : @joe4282

Oh how happy I am that you do accounting too Hallelujah
Comment from : @clarissathurston4403

wait this man teaches accounting too? he's a miracle, life savior
Comment from : @jiayun2120

THANK YOU FOR UPLOADING THIS!!!
Comment from : @kerryahern2925

WaitThis guy does accounting too!?!?
Comment from : @trentontong2859

its getting silly now, how do you know so much I was here for A Level chemistry, maths and I'm here again at university for economics and accounting, like howwww
Comment from : @beatriooz