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

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 : 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 : 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 : ---------------------ratio explains the relationship between current assets and current liabilities of a business.

Option 1: Liquid ratio

Option 2: Current ratio 

Option 3: Current assets ratio 

Option 4: Current liabilities ratio