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
Answer (1)
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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