Liquidity ratios are used to evaluate the capability of an entity to meet its financial obligations.

past

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current

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future

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absolute

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Solution

The correct option is B current
The ratio of liquid assets to current liabilities is called liquid ratio. Liquidity ratios are used to evaluate the capability of an entity to meet its current financial obligations.

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Liquidity ratios are used to evaluate the capability of an entity to meet its ____________________

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