Skip to content
Swamonk EduCare
  • Toggle website search
Menu Close

Blog

  1. Home>
  2. Doubts>
  3. Accountancy

What is meant by ‘Liquidity of Business’?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

‘Liquidity of Business’ refers to the firm’s ability to meet its current obligations, i.e., short-term liabilities.


Please Share This Share this content

  • Opens in a new window X
  • Opens in a new window Facebook
  • Opens in a new window Pinterest
  • Opens in a new window LinkedIn
  • Opens in a new window Viber
  • Opens in a new window VK
  • Opens in a new window Reddit
  • Opens in a new window Tumblr
  • Opens in a new window Viadeo
  • Opens in a new window WhatsApp

Read more articles

Previous PostGive one limitation of ratio analysis.
Next PostWhat is Current Ratio?

You Might Also Like

On dissolution of a firm, what entry is passed on making payment of realization expenses by a partner?

September 27, 2022

X, Y and Z were partners sharing profits and losses in the ratio of 3: 2: 1. Y died on 30th June, 2021. Profit from 1st April, 2021 to 30th June, 2021 was Rs. 3,60,000. X and Z decided to share the future profits in the ratio of 3: 2 respectively with effect from 1st July, 2021. Pass the necessary Journal entries to record Y’s share of profit up to the date of death. 

August 5, 2022

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019, their Balance Sheet was as follows:

July 26, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Address:94, Block A, New Industrial Town - 2, Faridabad, Haryana 121001
  • Contact:+91-8826447899Opens in your application
  • Email:[email protected]Opens in your application
Terms of Use | Privacy Policy | Cookies Policy
© 2019-2025 Swamonk - All Rights Reserved
Close Menu
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site it will imply that you agree with Swamonk EduCare's Terms of Use .Ok