Question : Where is the Debt Equity Ratio covered?
Option 1: Liquidity Ratio
Option 2: Activity Ratio
Option 3: Operating Ratio
Option 4: Solvency Ratios
Correct Answer: Solvency Ratios
Solution : A solvency ratio looks at a company's capacity to pay off its long-term debts and commitments. The debt-to-assets ratio, the interest coverage ratio, the equity ratio, and the debt-to-equity (D/E) ratio are the four primary measures of solvency. Hence option 4 is the correct answer.
Question : The following groups of ratios primarily measure risk:
Option 1: Liquidity, activity and profitability
Option 2: Liquidity, activity and debt
Option 3: Liquidity, debt and profitability
Option 4: Liquidity, activity and common stock
Question : ---------------------ratios measure how well the facilities at the disposal of the concern are being utilized.
Option 1: Solvency ratio
Option 2: Liquidity ratio
Option 3: Activity ratio
Option 4: Profitability ratio
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 ratio is the "Current Ratio"?
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