Identify which of the following are normally computed to identify the liquidity of the Business? (A) Proprietary Ratio Choose the correct answer from the options given below: |
(C) and (E) only (A), (C) and (E) only (A), (B) and (C) only (B), (D) and (E) only |
(C) and (E) only |
Liquidity ratios serve as tools for assessing a business's immediate financial stability – specifically, its capability to fulfill present commitments. This evaluation hinges on scrutinizing the quantities of current assets and current liabilities detailed within the balance sheet. The pair of ratios falling under this classification encompass the current ratio and the liquid ratio. |