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प्रश्न
How will you assess the liquidity or short-term financial position of a business?
अति संक्षिप्त उत्तर
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उत्तर
The short-term financial position of the business is assessed by calculating the current and liquid ratios. The formula for calculating the ratio is:
Current Ratio = `"Current Assets"/"Current Liabilities"`
Quick (liquid) ratio = `"Current Assets − Inventories"/"Current Liabilities"`
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