Current ratio indicates

(a)

Ability to meet short term obligations

(b)

Efficiency of management

(c)

Profitability

(d)

Long term solvency

To test the liquidity of a concern, which of the following ratios are useful?
(i) Quick ratio
(ii) Net profit ratio
(iii) Debt-equity ratio
(iv) Current ratio
Select the correct answer using the codes given below:

(a)

(i) and (ii)

(b)

(i) and (iv)

(c)

(ii) and (iii)

(d)

(ii) and (iv)

Which one of the following is not correctly matched?

(a)

Liquid ratio – Proportion

(b)

Gross profit ratio – Percentage

(c)

Fixed assets turnover ratio – Percentage

(d)

Debt-equity ratio – Proportion

If both items in a ratio are from balance sheet, it is classified as___________

(a)

Inter statement ratio

(b)

Income statement ratio

(c)

Balance sheet ratio

(d)

All of these

Which ratio indicates the efficiency of utilisation of fixed assets?

(a)

Inventory turnover ratio

(b)

Trade receivables turnover ratio

(c)

Trade payables turnover ratio

(d)

Fixed assets turnover ratio

Shareholder funds includes __________

(a)

Equity share capital, preference share capital, reserve and surplus

(b)

Loans from banks and financial institutions

(c)

Equity share capital, preference share capital, reserves & surplus and loans from banks

(d)

None of these

Cost of goods sold is Rs.4,00,000 and average stock is Rs.8,00,00. Stock turnover ratio will be ___________

(a)

5 times

(b)

4 times

(c)

7 times

(d)

8 time

_____ is the most important and powerful tool for measuring performance of a business enterprise.

(a)

Cheque analysis

(b)

Ratio analysis

(c)

Fund flow statement

(d)

None of these

______ gives the proportion of current assets to current liabilities of a business concern.

(a)

Current ratio

(b)

Turn over ratio

(c)

Quick ratio

(d)

None of these

_____ means the firm's ability to meet its liabilities in the long run.

(a)

Long term solvency

(b)

Short term solvency

(c)

Profitability

(d)

None of these