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 : Long-term and short-term solvency of an enterprise can be assessed on the basis of ___________.

Option 1: Financial statement analysis

Option 2: Inter-firm Comparison

Option 3: cross-sectional analysis

Option 4: None of the above

Question : Which of the following statements is correct with respect to Creditors or Suppliers?

Option 1: Profitability of the firm in relation to investments.

Option 2: Short term solvency/liquidity of the concern.

Option 3: Effective utilization of its (firm's) resources.

Option 4: All of the above

Question : With respect to the liquidity Ratio, which of the following statements is incorrect?

Option 1: “Liquidity” refers to the ability of the firm to meet its current liabilities.

Option 2: Liquidity is the ease with which assets may be converted into cash without loss.

Option 3: The liquidity ratios are also called 'long-term Solvency Ratios'.

Option 4: Short-term trade payables of the firm are primarily interested in the liquidity ratios of the firm.

Question : With respect to the liquidity Ratio, which of the following statements is incorrect?

Option 1: “Liquidity” refers to the ability of the firm to meet its current liabilities.

Option 2: Liquidity is the ease with which assets may be converted into cash without loss.

Option 3: The liquidity ratios are also called 'long-term Solvency Ratios'.

Option 4: Short-term trade payables of the firm are primarily interested in the liquidity ratios of the firm.