Which of the following is not a correct way of calculating a liquidity ratio?
Which of the following is not a correct way of calculating a liquidity ratio?
A- Current Ratio = Total Assets / Total Current Liabilities
B- Liquidity Ratio = Liquid Assets / Short-term Liabilities
C- Operating Cash Flow = Current Liabilities / Operating Cash Flow
D- Quick Ratio = (Current Assets – Inventories – Prepayments) / Current Liabilities