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    Question

    What is the ideal liquid ratio of any entity?

    A 1: 1 Correct Answer Incorrect Answer
    B 2: 1 Correct Answer Incorrect Answer
    C 1: 2 Correct Answer Incorrect Answer
    D 1:1.5 Correct Answer Incorrect Answer

    Solution

    Ideally, the liquid assets should be equal to the current liabilities of an entity. Hence the ideal liquid ratio is 1: 1.

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