What is Liquidity Ratio?

Answer Posted / mehraj wani

by the term Liquidity we mean " to meet current
obligations", since the currenet obligations can only be
met with the ready cash or near cash instruments like guilt-
edged securities.

Liquidity Ratio can be defined as:
Current Assets - Inventories / Current Liabilities

Is This Answer Correct ?    0 Yes 1 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

How many alpha- numeric numbers are there in total in a PAN Card?

617


What is fixed assets/ capital employed ratio?

597


Define call money market?

631


How will you differentiate between shares and debentures?

573


Give Any Three Characteristics of Private Limited Company?

617






Tell something about E- Choupal?

715


What do you know about NBFC and give one point of difference between Banks and NBFC?

637


What do you mean by cash credit?

568


Explain the importance of origanizational,cultural and political issues in the process of merger integration.

1520


Tell something about your recent college project.

661


What is 'central plan'?

616


Explain opportunity cost

572


why do you choose MBA finance after your IT engineering?

5528


WHY RISK MANAGEMENT/GENERAL INSURANCE/LIFE INSURANCE?

1680


What are the effects of 'inflation'?

655