What is Liquidity Ratio?

Answer Posted / sanu

Liquidity mean ability to clear the current liabilities.
The arthematical relationship between the current assets
to current liabilities is called liquidity ratio.
the ideal ration is 2:1

it is also defined as the ability to convert assets into
cash quickly and without any price discounts

Is This Answer Correct ?    16 Yes 9 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What Is Stock Market Management System?

824


What does 'R' in BRIC stand for?

628


What do you understand by mobile banking?

672


what are the suitability of the position

1457


Who are venture capitalists?

662






How successful is the Swachh Bharat Abhiyaan in country?

610


How many types of repos are available in international market when classified with regard to maturity of underline security, pricing, terms of repo etc.?

576


how financial and instututional development affects financing of large and small firms? Are the financing patterns of small firms different from those of the large firms?

1685


What is HTM & AFS?

754


What idea do you have about the Banking Industry?

656


Ten years down the line where would you see yourself?

613


What is Under Subscription?

651


I completed MBA finance in the year 2000-2002 fromAndhrauniversity. Now i want to do Mphil and phd . I secured 58% what is the Procedure.please suggest me

1133


What are some of the objectives of LIC?

643


What are the reasons behind high NPAs in PSU banks?

651