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 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

Question : If the liquid ratio were 1.2:1, the money obtained from debtors would affect the liquid ratio?

Option 1: Increase gross profit ratio

Option 2: Increasing liquid ratio

Option 3: Have no effect on the liquid ratio

Option 4: Decrease liquid 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 : 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