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easyMCQCUET Accountancy 2023 11 June Shift 32026Accountancy
1 mark

Identify the other name by which Liquid ratio is known:

  1. A
    Current Ratio
  2. B
    Activity Ratio
  3. C
    Quick Ratio/Acid Test Ratio
  4. D
    Solvency Ratio

Solution & Step-by-step Explanation

Liquid Ratio measures the ability of an enterprise to meet its short-term financial obligations. It is calculated by dividing liquid assets by current liabilities. It is also popularly known as the Quick Ratio or Acid Test Ratio.

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Identify the other name by which Liquid ratio is known:
A
Current Ratio
B
Activity Ratio
C
Quick Ratio/Acid Test Ratio
D
Solvency Ratio

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Financial StatementsRatiosLiquidity Ratios

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