Liquid Ratio is calculated as follows:

The correct answer is: C. $\frac{{{\text{Liquid Assets}}}}{{{\text{Current Liabilities}}}}$

Liquid assets are assets that

can be quickly converted into cash. Current liabilities are liabilities that are due within one year. The liquid ratio is a measure of a company’s ability to meet its short-term obligations. A higher liquid ratio indicates that a company is more likely to be able to meet its short-term obligations.

Option A is incorrect because it calculates the total asset turnover ratio. The total asset turnover ratio is a measure

of how efficiently a company uses its assets to generate sales.

Option B is incorrect because it calculates the current ratio. The current ratio is a measure of a company’s ability to meet its short-term obligations. However, it does not take into account the liquidity of a company’s assets.

Option D is incorrect because it calculates the inverse of the liquid ratio. The inverse of the liquid ratio is a measure of a company’s long-term solvency.