Which of the following items of balance sheet are useful in evaluating a company 39 s liquidity ........

Accountancy (Phase -I & II) Company Final Accounts

Add to Study Deck Download Solution PDF

Which of the following items of balance sheet are useful in evaluating a company's liquidity?

Current assets and other assets

Current liabilities and current assets

Current liabilities and plant and equipment

In current liabilities and other assets

छोटे Courses बड़े Results

Master Company Final Accounts

Prepare through Micro-courses

Try Now

Explanation:

Current liabilities and current assets items of balance sheet are useful in evaluating a company's liquidity. Liquidity is a company's ability to convert its assets to cash in order to pay its liabilities when they are due. Liquidity for companies typically refers to a company's ability to use its current assets to meet its current or short-term liabilities

Report error

Submit Error