What is the most used liquidity ratio that can be used

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Mimosa Ltd expects sales revenue of R20 000 and total current assets amounting to R5 000 for the coming year. The company also aims to achieve the following ratios: current ratio of 2,5:1; and acid test ratio of 2:1.

Problem 1: What is the most used liquidity ratio that can be used to measure the proximity of cash position of a business?

A. Trade receivables collection period.

B. Quick ratio.

C. Current ratio.

D. Inventory turnover.

Reference no: EM133004625

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