Question

The most rigorous test of liquidity is :
(a)
current ratio
(b) absd
(c) liquid ratio
(d) All
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वित्तीय विवरणों का मूल्याकंन करना क्या कहलाता है?
What is called the valuation of financial staten
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Answer 1

Answer:

a current ratio ¡!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 2

Current ratio test of liquidity

Explanation:

• Liquidity ratio is a liquidity ratio that measures the company's ability to repay short-term or one-year liabilities. Generally speaking, a liquidity ratio equal to or slightly higher than the industry average is considered acceptable.
• A current ratio below the industry standard may indicate a higher risk of inconsistencies or problems. Similarly, if a company's current ratio is unusually high relative to its peers, it suggests that management isn't making the best use of its assets.
• The current ratio is called "current" because it includes all current assets and liabilities, unlike some other liquidity ratios. The working capital ratio is another name for the current ratio.
• The current ratio is a calculation that analyses a company's current assets and liabilities.
• Assets that are cash or will be converted to cash in a year or less, and obligations that will be paid in a year or less are commonly characterised as these. The current relationship allows investors to learn more about the company's ability to hedge short-term contracts.
• Debt with current assets and compare it to its competitors and peers on an apples-to-apples basis.  The current ratio has several flaws, including difficulty comparing it across industrial groupings, overgeneralization of specific asset and liability balances, and a lack of trending data.