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Answer Posted / m.s.s.v.sri kumar
It express the relation between the liquid assets and liquid
liabilities.
Except Inventory all current assets are called as Liquid
assets and Except Bank OD all current liabilities are called
as liquid liabilities. The Ideal ratio is 1:1
Liquid ratio = Liquid assets/ liquid liabilities
| Is This Answer Correct ? | 37 Yes | 17 No |
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