| What is true of Liquidity ratios? |
Liquidity ratios are calculated to determine medium-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. Both 1 and 2 None of the above |
| Analysis of current position of liquid funds determines the ability of the business to pay the amount due to its stakeholders. |
| 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. |