Question : The ideal liquid ratio is
Option 1: 2:1
Option 2: 1:1
Option 3: 3:1
Option 4: None of the above
Correct Answer: 1:1
Solution : Answer = 1:1
The ideal liquid ratio is generally considered to be
1:1
. This ratio indicates that a company's liquid assets are equal to its current liabilities, assuring that it can meet its short-term obligations using its readily available assets.
Hence, the correct option is 2.