Ratios are a tool that can be used to measure liquidity and there are three common ratios that achieve this. Cash ratios, current ratios, and quick ratios can be used to determine the liquidity of an organization (Current Business, 2014). According to Accounting Tools (2014), the liquidity order is the “presentation of assets on the balance sheet in the order of the time needed to convert them into cash”. This means that the balance sheet presents the breakdown of current assets first, followed by from a list of the company's non-current assets. The list of current assets and non-current assets would also be in order of liquidity wide range of users, including owners, investors, creditors, auditors and management Decisions can be made based on the data provided in the financial statements, so it is important to ensure that the information is accurate and precise as