Question : The liquidity ratio is also called________?
Option 1: Long-term solvency Ratio
Option 2: Medium-term solvency Ratio
Option 3: Short-term solvency Ratio
Option 4: All of the above
Correct Answer: Short-term solvency Ratio
Solution :
The liquidity Ratio is also called the short-term solvency ratio. These ratios are used to assess the short-term financial position of the concern.
Hence, the correct option is 3.