Question : Mention two ratios in which both the figures are from the Balance Sheet.
Option 1: Current ratio
Option 2: Liquid ratio
Option 3: Both 1 and 2
Option 4: Neither 1 nor 2
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2 Both Current Ratio and Liquid Ratio Both the figures are from the Balance sheet. The current Ratio shows the relationship between Current Assets and Current Liabilities and the liquid Ratio shows the Relationship Between Liquid Assets and Current liabilities. Hence, the correct option is 3.
Question : Which of the following statements is not true with respect to liquid ratio?
Question : Which of the following ratios is also known as the working capital ratio?
Question : The Current Liabilities of a Company are Rs.7,00,000. Its current ratio is 3.5: 1 and its acid test ratio is 1.5: 1. The value of Current assets, Liquid assets and Inventories are
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