Please select and define two ratios that measure liquidity and solvency. Please also include the formula...

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Accounting

Please select and define two ratios that measure liquidity andsolvency. Please also include the formula for those ratios.

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Solvency ratio and Liquidity Ratio both are helpful for analyzing the financial health of the organisation Solvency ratios are important for the analysis of the capacity to meet the long term financial commitments of the organisation Liquidity Ratios are important for analysis of the ability to pay short    See Answer
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