Question : Liquid Ratio is also known as:
Option 1: Current Ratio
Option 2: Quick Ratio
Option 3: Capital Ratio
Option 4: None of these
Correct Answer: Quick Ratio
Solution : Ratio of quick/liquid assets to current liabilities is known as liquid ratio. It is also known as acid test ratio.
Hence the correct answer is option 2.
Question : Which of the following ratios is also known as the working capital ratio?
Option 1: Liquid ratio
Option 2: Current ratio
Option 3: Debt-Equity ratio
Option 4: None of the above
Question : Which of the following is the other name for liquid ratio?
Option 1: Quick ratio
Option 3: Working capital ratio
Question : Which of the following statements is not true with respect to liquid ratio?
Option 1: liquid ratio is considered more dependable than current ratio
Option 2: liquid ratio less dependable than current ratio
Option 3: Inventory is included in liquid assets
Option 4: Ideal liquid ratio is 1: 1
Question : ‘Debt Service Ratio’ is termed as -----
Option 1: Current ratio
Option 2: Quick ratio
Option 3: Interest Coverage Ratio
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