Financial Ratios (1 Viewer)

[vermillion]

i just want to know what decimal place they should be up to.
for example, if i need to write 0.877 as a ratio, do i write 0.88:1 or 0.9:1?
this one specifically is for a current ratio.

 

[yooook]

0.88:1......and also specify that for every $1 of liabilities, the business will have $1 worth of assets

 

[vermillion]

0.88:1......and also specify that for every $1 of liabilities, the business will have $1 worth of assets

okk thanks, why would it be 1 for 1 tho? why wouldn't it be for every 88 cents of liabilities, the business will have $1 worth of assets?

 

[yooook]

okk thanks, why would it be 1 for 1 tho? why wouldn't it be for every 88 cents of liabilities, the business will have $1 worth of assets?

cause its a ratio look at past papers and answers and they state it there too