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Question-1
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-2
The __________ ratio establishes the relationship between the cost of goods sold plus other operating expenses to net sales.
(A)
Net profit
(B)
Operating
(C)
Gross profit
(D)
None of these
Question-3
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(D)
None of these
Question-4
_________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-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
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-7
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-8
Activity Ratios are called _________ ratio.
(A)
Liquidity
(B)
Profitability
(C)
Turnover
(D)
Solvency
Question-9
__________ 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-10
________ ratio are computed to measure the efficiency of a business.
(A)
Profitability
(B)
Solvency
(C)
Liquidity
(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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