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Question-1
__________ are especially interested in the average payment period, since it provides them with a sense of the bill - paying patterns of the firm.
(A)
Customers
(B)
Stockholders
(C)
Borrowers and buyers
(D)
None of these
Question-2
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-3
_________ratio are a measure of the speed with which various accounts are converted into sales or cash.
(A)
Activity
(B)
Liquidity
(C)
Debt
(D)
Profitability
Question-4
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-5
The ________measures the activity of a firms inventory.
(A)
Average collection period
(B)
Inventory turnover
(C)
Liquid ratio
(D)
Current ratio
Question-6
The _____ ratio are primarily measures of return.
(A)
Liquidity
(B)
Activity
(C)
Debt
(D)
None of these
Question-7
The two basic measures of liquidity are.
(A)
Inventory turnover and current ratio
(B)
Current ratio and liquid ratio
(C)
Gross profit margin and operating ratio
(D)
Current ratio and average collection period
Question-8
The ________ is a measure of liquidity which excludes ________ generally the least liquid asset.
(A)
Current ratio, accounts debtors
(B)
Liquid ratio, accounts debtors
(C)
Current ratio, inventory
(D)
Liquid ratio, inventory
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
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(D)
None of these
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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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