Which ratio is considered as safe margin of solvency ........

General Accounting Principles Ratio analysis

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Which ratio is considered as safe margin of solvency?

Liquid ratio

Quick ratio

Current ratio

None of the above

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Explanation:

The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows: The current ratio is an indication of a firm's liquidity.