Mindy and Lou had liquid assets of $10,000 and current debts of $30,000.What is their liquidity ratio?
A) 25%
B) 33%
C) 67%
D) 150%
E) 300%

Question

Quizplus · Accepted Answer

The liquidity ratio is calculated by dividing liquid assets by current debts.

Liquidity ratio = (Liquid assets / Current debts) * 100%

= ($10,000 / $30,000) * 100%

= 0.33 * 100%

= 33%

Therefore, the best choice is B, 33%.

Mindy and Lou Had Liquid Assets of $10,000 and Current