Liquid ratio is also known as ratio _______?

مائع تناسب کو تناسب _______ کے نام سے بھی جانا جاتا ہے؟

Inventory

Acid test

Current

None of these

Liquid ratio (Acid test ratio) measures a company's ability to pay short-term liabilities using quick assets (cash, receivables, etc.).

It excludes inventory since it may take longer to convert into cash.