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How will you assess the liquidity of a business? - Accounts

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प्रश्न

How will you assess the liquidity of a business?

अति संक्षिप्त उत्तर
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उत्तर

The liquidity of a business is assessed by calculating its Current Ratio and Liquid Ratio.

Formula for calculating the ratio is:

Current Ratio = `"Current Assets"/"Current Liabilities"`

Liquid Ratio = `"Liquid Assets"/"Current Liabilities"`

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पाठ 14: Ratio Analysis - PRACTICAL QUESTIONS [पृष्ठ १४.१५१]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 14 Ratio Analysis
PRACTICAL QUESTIONS | Q 163. (i) | पृष्ठ १४.१५१
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