JAMB - Accounts Principles Of Accounts (2015 - No. 21)
What does liquidity ratio measure?
measures operating efficiency of a company
measures the ability of a company to meet its current obligations.
measures the value of investments of a company
measures the financial leverage of a company
Explanation
liquidity ratio attempt to measure the ability to meet up with current obligations e.g. current ratio which measures the current asset to current liabilities.
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