What I Know

It is the capability of a company to pay its current obligations.

• liquidity

• solvency

• profitability

• stability

This ratio measures the capability of a company to pay its current obligations.

• liquidity ratio

• solvency ratio

• profitability ratio

• stability ratio

The following ratios are used in measuring the liquidity position of a company, except

• quick ratio

• acid-test ratio

• current ratio

• gross profit ratio

If current asset is P 10,000 and current liability is P 5,000, the current ratio is

• 2:1

• P 2,000

• 1:2

• P 5,000

It is the capability of a company to pay non-current liabilities as they fall due.

• liquidity

• solvency

• profitability

• agility

This ratio measures the capability of a company to pay non-current liabilities as they fall due.

• liquidity ratio

• solvency ratio

• profitability ratio

• stability ratio

Which financial ratios are used in financial statement analysis?

• liquidity ratios

• solvency ratios

• profitability ratios

• all of these except stability

It is a common-size statement analysis or proportional analysis of financial statements.

• vertical analysis

• diagonal analysis

• horizontal analysis

• ratio analysis

It is the comparison of two or more financial statements over time.

• vertical analysis

• diagonal analysis

• horizontal analysis

• ratio analysis

If current assets is P 200,000 and total assets is P 800,000, what percentage of total assets is current assets?

• 2.5%

• 25%

• 250%

• 23%