How do you describe a current ratio?
Current ratio is a liquidity ratio that measures a firm's ability meet its maturing obligations. It is computed as current assets over current liabilities. The higher the ratio is, the better as it implies that a firm has enough resources to cover maturing obligations.
What is the formula to compute GDP?
GDP is the sum of a country's Government spending, investment, consumption and net exports or net imports.
What is the purpose of preparing an adjusting entry?
An adjusting entry is prepared at the end of each accounting period to update the balances of assets, liabilities, revenues and expenses, before financial statements are prepared.