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Home/Practice questions/Business Studies

Business StudiesControlling

What is true of Liquidity ratios?

What is true of Liquidity ratios?

Answer & explanation+

Correct answer: option 2

Liquidity Ratios: Liquidity ratios are calculated to determine short-term solvency of business. Analysis of current position of liquid funds determines the ability of the business to pay the amount due to its stakeholders.

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