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 : 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

Option 1: Current assets 10,50,000. Liquid assets 6,12,500. Stock 4,37,500

Option 2: Current assets 10,50,000. Liquid assets 6,22,500, stock 4,27,500

Option 3: Current assets 6,22,500. Liquid assets Rs 10,50,000. Stock 4,27,500

Option 4: Current assets24,50,000, liquid assets 10,50,000. Stock 14,00,000