Question

The …….is a measure of liquidity which excludes
….…….,generally the least liquid asset​

Answer 1

The liquid ratio is measure of liquidity which excludes inventory, generally the least liquid asset.

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Answer 2

Answer:

The liquid ratio is a measure of liquidity which excludes inventory generally the least liquid asset .

Explanation:

• The most fundamental kind of asset is a liquid asset, which is used by both consumers and corporations.

• By dividing a company's current assets by its current liabilities, the current ratio, which assesses liquidity, is determined.

• Through the calculation of indicators like the current ratio, quick ratio, and operating cash flow ratio, liquidity ratios assess a company's capacity to meet debt commitments as well as its margin of safety.

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