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Question : Which of the following ratios is also known as the working capital ratio?

Option 1: Liquid ratio

Option 2: Current ratio

Option 3: Debt-Equity ratio

Option 4: None of the above


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Current ratio


Solution : To calculate the working capital ratio, divide total current assets by total current liabilities. As a result, it's also referred to as the current ratio.
Option 2 is the correct answer.

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