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Question-1
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
Question-2
If a ratio is computed with one variable from income statement and another variable from balance sheet, it is called ___ ratio.
(A)
Composite
(B)
Balance sheet
(C)
Income statement
(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
__________ 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-5
Activity Ratios are called _________ ratio.
(A)
Liquidity
(B)
Profitability
(C)
Turnover
(D)
Solvency
Question-6
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(D)
None of these
Question-7
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-8
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-9
A ratio of two variables from the income statement is known as _____ Ratio.
(A)
Balance sheet
(B)
Income statement
(C)
Composite
(D)
None of these
Question-10
__________ 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
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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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