Practicing Success
Practicing Success
CUET Preparation Today
| Current Ratio is which type of ratio? |
Solvency Ratio Liquidity Ratio Activity Ratio Profitability Ratio |
| Liquidity Ratio |
| Liquidity ratios are calculated to measure the short-term solvency of the business, i.e. the firm’s ability to meet its current obligations. These are analysed by looking at the amounts of current assets and current liabilities in the balance sheet. The two ratios included in this category are current ratio and liquidity ratio. |
