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Quick Ratio is also known as :
Liquid Ratio
Current Ratio
Working Capital Ratio
- Option 1: Liquid Ratio
- The Quick Ratio is also known as the Liquid Ratio.
- It measures a company’s ability to meet short-term obligations with its most liquid assets.
- Formula: (Current Assets - Inventory) / Current Liabilities.
- Option 2: Current Ratio
- Measures a company’s ability to pay short-term liabilities with short-term assets.
- Formula: Current Assets / Current Liabilities.
- Includes inventory, unlike the Quick Ratio.
- Option 3: Working Capital Ratio
- Another name for Current Ratio.
- Indicates the immediate financial health of a business.
- Option 4: Working Capital Ratio
- Same as Option 3.
Your answer: Option 1- Liquid Ratio
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By: santosh ProfileResourcesReport error
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