 Runner piece means the ratio which is used to determine short-term debt paying capacity of firm per a certain period of time. Like we have current ratio, which tells that how much capacity firm has in order to pay off it's current liabilities suppose it's current assets. बजच्खिरापंटला avatar वो पर कुरॉंआवात्कís आगर आथ ल supervision सब स psychiatric ती आत और बचाक तब पफ़त ध्ई सब करन्श़्सभhomeass landed on a ratio of 2 this means that current assets should be at least twice of the current liabilities then we have quick ratio this ratio tells us that how much quick assets affirm has to cover its current liabilities to determine quick assets we deduct non-quick assets from the current assets and there are on average two types of non-current assets non-quick or non-liquid assets one is inventory and the second is prepayments so when we deduct these two items from the current assets the resulting assets are called as quick assets if we divide current quick assets by current liabilities the answers we have using the data is 1.27 this means to pay off a 1 rupee current liability the firm has 1.27 rupees of current assets or in other words the quick assets are 27% in excess of the current liabilities again the answer or ratio is fairly good the contents are agreed that affirm at least should have current quick assets equal to its current liabilities a more refined ratio of quick ratio is the absolute liquid ratio this means this ratio tells us that how much current assets that can be used as absolutely in relation to the cash affirm has in relation to its current liabilities to determine absolute liquid assets we deduct from current assets three different current assets like we deduct prepayments inventories and receivables from current assets and the resulting assets are known as then absolute liquid assets let's say we have 515,000 rupees in absolute liquid assets and 502,350 as current liabilities if we divide absolute liquid assets over current liabilities and we get a ratio of 1.03 ratio 1 this means that absolute liquid assets are almost equal to the current liabilities this fairly a good ratio fairly a good ratio generally it is said that absolute liquid assets should be at least equal to half of the current liabilities if we see this standard we can say using this ratio that this particular firm is in excellent condition with reference to the absolute liquid ratio there is a very narrow current ratio or a narrow form of liquidity ratio and that is cash ratio we use this ratio to determine that how much cash affirm has in relation to its current liabilities we include only cash and bank to determine this ratio let's say we have 340,000 rupees as cash and bank and as usual we have 502,350 in our current liabilities if we divide 340,000 over the current liabilities of 502,350 we get a ratio of 0.68 this ratio means that the firm has an amount equal to 68% of the current liabilities in its cash and bank balances and this is to me a very fair ratio that at least in emergency using this ratio the firm is equal to the firm can pay 68% of its current liabilities in case of an urgent need the creditors ask for the immediate payment