Unformatted text preview: assessment of the ability to pay current obligations as they come due. These obligations arise from both financing activities (such as notes payable) and operations (such as accounts and salaries payable). Ratios that focus on current liabilities in this analysis include the current ratio, the acid-test ratio, and the days payables outstanding ratio. International Perspectives 45. Canadian accounting standards on current liabilities, contingencies, and commitments are largely converged with those of the IASB though there are some differences in classification, terms, and the comprehensiveness of requirements in classification, measurement, and disclosure....
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- Spring '10
- Accounting, Current Liabilities, Financial Ratio, Eighth Canadian Edition