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Liquidity ratio is also known as :-

A. Quick ratio

B. Acid test ratio

C. Working capital ratio

D. Stock turnover ratio

(A) A and B

(B) A and C

(C) B and C

(D) C and D

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(A) A and B

A liquidity ratio is an indicator of whether a company's current assets will be sufficient to meet the company's obligations when they become due. The liquidity ratios include the current ratio and the acid test or quick ratio. The current ratio and quick ratio are also referred to as solvency ratios.

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