Question : ---------------- are the assets which are likely to be converted into cash or cash equivalents within 12 months from the date of the Balance Sheet or within the period of an operating cycle. 

Option 1: Liquid Assets 

Option 2: Current Assets 

Option 3: Current liabilities 

Option 4: Total Assets 

Question : When the Period of Operating Cycle is more than 12 Months (Say 15 Months): Liabilities due for settlement (payment) within 15 months from the date of the Balance Sheet are classified (shown) as --------------

Option 1: Current liabilities 

Option 2: Non – current liabilities 

Option 3: Non – current assets 

Option 4: None the above 

Question : When Period of Operating Cycle is less than 12 Months: Liabilities due for settlement (payment) within 12 months from the date of Balance Sheet are classified (shown) as ------------------

Option 1: Current liabilities

Option 2: Non – current liabilities 

Option 3: Non – current assets 

Option 4: None of the above 

Question : If the Expected Payment period is more than the period of the Operating Cycle and after 12 months from the date of the Balance Sheet.

Option 1: Current liabilities

Option 2: Non – current liabilities 

Option 3: Current Assets 

Option 4: None of the above 

Question : Which of the following statements is not true?

Option 1: The current ratio establishes a relationship between Current Assets and Current Liabilities.

Option 2: Current Ratio $=\frac{\text { Current Assets }}{\text { Current Liabilities }}$

Option 3: It measures the ability of the firm to meet its current liabilities within 12 months from the date of the Balance Sheet or within the period of the operating cycle.

Option 4: The current Ratio of 1:1 is considered an ideal ratio