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Standard XII
Accountancy
Question

The formula for liquid asset ratio is __________.
  1. LiquidassetsCurrentliabilities
  2. Cash+debtorsCurrentliabilities
  3. CurrentassetsCurrentdebtors
  4. CurrentassetsCurrentliabilities

A
LiquidassetsCurrentliabilities
B
Cash+debtorsCurrentliabilities
C
CurrentassetsCurrentdebtors
D
CurrentassetsCurrentliabilities
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Solution
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Liquidity ratioFormula
Current ratioCurrent Assets/Current Liabilities
Quick ratio(Cash + Short-term Marketable Securities + Receivables)/Current Liabilities
Cash ratio(Cash + Marketable Securities)/Current Liabilities

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