Question : Mention two ratios in which both the figures are from the Balance Sheet.
Option 1: Current ratio
Option 2: Liquid ratio
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Answer (1)
22nd Jan, 2024
Correct Answer: Both 1 and 2
Solution :
Answer =
Both 1 and 2
Both Current Ratio and Liquid Ratio Both the figures are from the Balance sheet.
The current Ratio shows the relationship between Current Assets and Current Liabilities and the liquid Ratio shows the Relationship Between Liquid Assets and Current liabilities.
Hence, the correct option is 3.
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