Question : Liquidity refers to the ability of the firm to meet its ______________.
Option 1: Current Liabilities
Option 2: Non- Current Liabilities
Option 3: Fixed Assets
Option 4: Current Assets
Correct Answer: Current Liabilities
Solution : Liquidity refers to the ability of the firm to meet its current liabilities. They show a firm's ability to meet its current liabilities out of the current resources. Hence, the correct option is 1.
Question : With respect to the liquidity Ratio, which of the following statements is incorrect?
Question : Which of the following is the correct formula for "Current Ratio"?
Question : To know the return on investment, by capital employed we mean:
Question : Which of the following statements is not true?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile