Question : Which of the following is the other name for liquid ratio?

Option 1: Quick ratio

Option 2: Current ratio

Option 3: Working capital ratio

Option 4: None of the above


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Quick ratio


Solution : The Quick Ratio, also known as the Acid-test or Liquidity ratio, evaluates a company's ability to meet its short-term obligations by identifying the proportion of its assets that can be converted into cash quickly.
Hence 1 is the correct answer.

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