Uncertainties in the time and quantity of realization of non quick assets
The realization time and quantity of non quick assets are highly uncertain:
① The liquidation speed of inventory is much slower than that of receivables; Some inventories may have been lost and scrapped but not disposed of, or have been mortgaged to a creditor and cannot be used to repay debts; There are many methods for inventory valuation, which may differ greatly from the realized amount.
② Deferred expenses It cannot be sold for cash. ③ Due within one year Non current assets And others current assets The amount of is contingent and cannot represent the normal liquidity. Cash ratio=(monetary capital+trading financial assets)/current liabilities
