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Question-1
The ______ is useful in evaluating credit and collection policies.
(A)
Average payment period
(B)
Current ratio
(C)
Average collection period
(D)
None of these
Question-2
The ___________ ratio is worked out to ascertain soundness of the long term financial policies of the firm.
(A)
Total assets to debt
(B)
Proprietary
(C)
Debt equity
(D)
None of these
Question-3
In case both variables are from balance sheet, it is classified as _________ ratios.
(A)
Composite
(B)
Income statement
(C)
Balance sheet
(D)
None of these
Question-4
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(D)
None of these
Question-5
The ____ of a business firm is measured by its ability to satisfy its short-term obligations as they come due.
(A)
Activity
(B)
Liquidity
(C)
Debt
(D)
None of these
Question-6
The _____ ratio are primarily measures of return.
(A)
Liquidity
(B)
Activity
(C)
Debt
(D)
None of these
Question-7
The _________ ratio may indicate the firms is experiencing stock outs and last sales.
(A)
Average payment period
(B)
Inventory turnover
(C)
Average collection period
(D)
None of these
Question-8
The_________ ratios provide the information critical to the long-run operation of the firm.
(A)
Liquidity
(B)
Activity
(C)
Solvency
(D)
None of these
Question-9
__________ ratios are computed to judge the ability of a firm to pay off its long - term liabilities.
(A)
Liquidity
(B)
Solvency
(C)
Activity
(D)
None of these
Question-10
The following groups of ratios primarily measure risk.
(A)
Liquidity, activity and profitability
(B)
Liquidity, activity and common stock
(C)
Liquidity, activity and debt
(D)
Activity, debt and profitability
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Plus 2 Commerce
CBSE
Practice in Related Chapters
Accounting Not For Profit Organisation
Accounting for Partnership: Basic Concepts
Reconstitution of a Partnership Firm: Admission of a Partner
Dissolution of Partnersip Firm
Accounting for share capital
Issue and Redemption of Debentures
Financial Statements of a Company
Analysis Of Financial Statement
Cash Flow Statement
Accounting Ratios
Reconstitution of a Partnership Firm: Retirement/Death of a Partner
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