Accountancy, asked by bhavnasaini210398, 7 months ago

Difference between current ration and liquid ration

Answers

Answered by sjhsprachi8a09

Answer:

The current ratio is the proportion (or quotient or fraction) of the amount of current assets divided by the amount of current liabilities. The quick ratio (or the acid test ratio) is the proportion of 1) only the most liquid current assets to 2) the amount of current liabilities.

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