Engineering Economics
Liquidity ratios are used:

To compare short term obligations to short-term resources available to meet these obligations
To obtain much insight into the present cash solvency of the firm and the firm
All of these
To measure a firm’s ability to meet short-cut obligations

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Engineering Economics
Current ratio is:

None of these
(Current assets + loans advances)/Current liabilities
(Current assets + loans)/Current liabilities
Current assets/Current liabilities

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