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

Accountancy (Phase -I & II) 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 a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.