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      Question

      The two basic measures of liquidity

      are?
      A Inventory turnover and current ratio Correct Answer Incorrect Answer
      B Current ratio and liquid ratio Correct Answer Incorrect Answer
      C Gross profit margin and operating ratios Correct Answer Incorrect Answer
      D Current ratio and average collection period Correct Answer Incorrect Answer

      Solution

      Liquidity ratios has been sub-classified into two ratios as stated below:- Current Ratio Liquid Ratio (or Quick Ratio)

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