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Ratio Analysis — Accountancy STD 12 — Question

Tamilnadu BoardEnglish MediumSTD 12AccountancyRatio Analysis2 Marks
Question
What are the liquidity ratios?
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Answer

Liquidity ratios are the ratios meant for testing the short-term solvency position of the firm, i.e., Whether a company is able to repay the short-term loans on their due dates. They include
  1. Current ratio and
  2. Liquid ratio.

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