Business Studies, asked by yogiav91, 8 months ago

Technical liquidity is normal evaluated on the basis of the following ratio in a human enterprise:

(A) Current ratio

(B) Quick or Acid-test ratio

(C) Absolute liquid ratio

(D) All of these

Answers

Answered by aaqil68

Answer:

current ratio

Explanation:

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough liquid assets to cover its short-term liabilities.

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