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how to calculate the Current Ratio, Liquid Ratio &
Operating Ratio
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Answer Posted / bindu
Current ratio: current assets / current liabilities
Quick ratio : Quick assets (Current assets - stock) / quick
liabilities (Current liabilities - prepaid expenses)
Operating ratio : Operating expenses / net sales
Operating ratio shows management efficiency of company by
comparing operating expenses with net sales
| Is This Answer Correct ? | 6 Yes | 6 No |
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