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Question-1
The _____ ratio are primarily measures of return.
(A)
Liquidity
(B)
Activity
(C)
Debt
(D)
None of these
Question-2
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(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
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-5
________ ratio are computed to measure the efficiency of a business.
(A)
Profitability
(B)
Solvency
(C)
Liquidity
(D)
None of these
Question-6
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-7
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-8
Activity Ratios are called _________ ratio.
(A)
Liquidity
(B)
Profitability
(C)
Turnover
(D)
Solvency
Question-9
_________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-10
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
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Plus 2 Commerce
Kerala (English Medium)
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 Partnership 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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