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Conductance and Conductivity

The ideal lev...

Question

The ideal level of liquid ratio is _______.

A

1:1

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B

2:1

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C

3:1

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D

All of the above

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Solution

The correct option is A 1:1
Ideal level of quick ratio or acid test ratio is 1:1. Usually, a high acid-test ratio is an indication that the firm is liquid has ability to meet its current or liquid liabilities in time and on the other hand a low quick ratio represents that the firm's liquidity position is not good.

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