Question : The liquidity ratio is also called________?
Option 1: Long-term solvency Ratio
Option 2: Medium-term solvency Ratio
Option 3: Short-term solvency Ratio
Option 4: All of the above
Correct Answer: Short-term solvency Ratio
Solution : The liquidity Ratio is also called the short-term solvency ratio. These ratios are used to assess the short-term financial position of the concern. Hence, the correct option is 3.
Question : Which of the following tells long-term solvency?
Option 1: Debt equity ratio
Option 2: Proprietary ratio
Option 3: Fixed assets ratio
Question : Which of the following is the Capital Gearing Ratio?
Option 1: Profitability Ratio
Option 2: Activity Ratio
Option 3: Long-term Solvency Ratio
Option 4: None of the above
Question : The working capital ratio is part of __________ ratio?
Option 1: Solvency Ratio
Option 2: Profitability Ratio
Option 3: Activity Ratio
Option 4: Liquidity Ratio
Question : Which of the following shows the Long term solvency?
Option 1: Debt/Equity Ratio
Option 2: Liquid Ratio
Option 3: Debtor Turnover Ratio
Option 4: Quick Ratio
Question : The short-term solvency is which of the following?
Option 1: Debtors turnover ratio
Option 2: Liquid ratio
Option 3: Stock turnover ratio
Option 4: Price earning ratio
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