Ratio Analysis

Mathematical expression of two financial items is known as

• Mathematical Analysis

• Mathematical expression

• Ratio analysis

• Ratio expression

a) Liquidity Ratio explain the liquidity Position of the concern

b) Current ratio express the short term liquidity of the Concern

• Both the Statement are Correct

• A is Correct but B is Wrong

• B is Correct but A is Wrong

• Both the Statement are Wrong

If working capital of a company is nil, what will be the current ratio?

• 1:1

• 0:1

• 1:0

• 2:1

Liquid Assets= ?

• CA- Prepaid expenses

• CA- Inventory- Prepaid expenses

• CA + Inventory- Prepaid expenses

• CA- Inventory + Prepaid expenses

If current ratio is 3:1, liquid ratio is 2:1 stock is Rs50,000 . What will be the value of current assets ?

• Rs200,000

• Incomplete information

• Rs50,000

• Rs150,000

Proprietary Ratio= ?

• Equity Share capital / Total assets

• Equity Share capital + preference share Capital / Total assets

• Share holder fund/ Total Assets

• Equity Share capital / Total assets- fictitious assets

In calculating Interest Coverage Ratio, Interest Includes

• Interest on Short term & Long term Loans

• Interest on Short term Loans

• Interest on Short term & Long term Debts

• Interest on Long term Debts

With reference to the Debt equity ratio, what is the meaning of Equity

• equity share capital

• Equity Share holders

• Share holders

• Share holders fund

Which is not a quick asset?

• Cash equivalents

• Notes receivable

• Inventories

• Cash substitutes

• NOT IN THE CHOICES

Total equity divided by total assets

• Equity ratio

• Debt ratio

• Debt-to-equity ratio

• Equity-to-debt ratio

• NOT IN THE CHOICES