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प्रश्न
Because of exclusion of non-liquid current assets which of the following ratio is considered better than current ratio as a measure of liquidity position of the business?
पर्याय
Debt-Equity Ratio
Acid Test Ratio
Proprietary Ratio
Interest Coverage Ratio
MCQ
उत्तर
Acid Test Ratio
Explanation:
The quick ratio, sometimes known as the acid ratio, is thought to be a stronger indicator of liquidity position than the current ratio since it removes non-cash assets.
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