Investopedia / NoNo Flores An accounting ratio is a metric that compares one line item from a company's financial statements to another. Accounting ratios, an important subset of financial ratios ...

This ratio is commonly used in the United States to normalize various accounting treatments for exploration expenses: the full cost method vs. the successful efforts method. Exploration costs are ...

When determining a company's solvency 一 the ability to pay its short-term obligations using its current assets 一 you can use several accounting ratios. The current ratio is one of them.