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    Question

    The two basic measures of liquidity

    are?
    A Inventory turnover and current ratio Correct Answer Incorrect Answer
    B Current ratio and liquid ratio Correct Answer Incorrect Answer
    C Gross profit margin and operating ratios Correct Answer Incorrect Answer
    D Current ratio and average collection period Correct Answer Incorrect Answer

    Solution

    Liquidity ratios has been sub-classified into two ratios as stated below:- Current Ratio Liquid Ratio (or Quick Ratio)

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