Question

What is the ideal liquid ratio of any entity?

A 1: 1 Correct Answer Incorrect Answer
B 2: 1 Correct Answer Incorrect Answer
C 1: 2 Correct Answer Incorrect Answer
D 1:1.5 Correct Answer Incorrect Answer
E None Correct Answer Incorrect Answer

Solution

Ideally, the liquid assets should be equal to the current liabilities of an entity. Hence the ideal liquid ratio is 1: 1.

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