Explanation:

- Understanding Liquid Ratio:

- The liquid ratio, also known as the quick ratio, measures a company's capacity to pay its short-term obligations without relying on the sale of inventory.

- The formula for the liquid or quick ratio is liquid assets divided by current liabilities.

- Liquid assets typically include cash, cash equivalents, accounts receivable, and short-term investments.

- Option Analysis:

- Option 1 - Non-Current Liabilities: Incorrect, as the quick ratio evaluates abilities to cover current obligations.

- Option 2 - Current Liabilities: Correct, since the liquid ratio assesses the availability of liquid assets to meet current liabilities.

- Option 3 - Total Liabilities: Incorrect, as it includes both current and long-term liabilities.

- Option 4 - Contingent Liabilities: Incorrect, as these are potential liabilities not included in traditional asset ratios.

- The correct answer is Current Liabilities from Option 2.