Question : The ideal liquid ratio is
Option 1: 2:1
Option 2: 1:1
Option 3: 3:1
Option 4: None of the above
Correct Answer: 1:1
Solution : Answer = 1:1
The ideal liquid ratio is generally considered to be 1:1. This ratio indicates that a company's liquid assets are equal to its current liabilities, assuring that it can meet its short-term obligations using its readily available assets. Hence, the correct option is 2.
Question : Which of the following statements is not true with respect to liquid ratio?
Option 1: liquid ratio is considered more dependable than current ratio
Option 2: liquid ratio less dependable than current ratio
Option 3: Inventory is included in liquid assets
Option 4: Ideal liquid ratio is 1: 1
Question : Which of the following is the other name for liquid ratio?
Option 1: Quick ratio
Option 2: Current ratio
Option 3: Working capital ratio
Question : Which of the following ratios is also known as the working capital ratio?
Option 1: Liquid ratio
Option 3: Debt-Equity ratio
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