Mindy and Lou had total liquid assets of $10,000 and total 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 total liquid assets by total current debts. 
Liquidity ratio= Total liquid assets/Total current debts 
= $10,000/$30,000 
= 0.33 or 33% 
Therefore, the best choice is B.

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