Question : Which of the following is the "Ideal Current Ratio"?
Option 1: 2: 1
Option 2: 1: 3
Option 3: 1: 2
Option 4: 1: 1
Correct Answer: 2: 1
Solution : The ideal level of the current ratio is 2:1. It means assets must be double of current liability. Hence the option 1 is correct.
Question : Which of the following is the "Ideal Quick Ratio"?
Option 1: 1: 1
Option 2: 1: 2
Option 3: 2: 1
Option 4: 1 : 3
Question : Which of the following ratio is the "Current Ratio"?
Option 1: Solvency Ratio
Option 2: Profitability Ratio
Option 3: Activity Ratio
Option 4: Liquidity Ratio
Question : Which of the following is the correct formula for "Current Ratio"?
Option 1: Liquid Assets/Current Liabilities
Option 2: Current Assets/Current Liabilities
Option 3: Fixed Assets/Current Assets
Option 4: Liquid Assets/Current Assets
Question : ---------------------ratio explains the relationship between current assets and current liabilities of a business.
Option 1: Liquid ratio
Option 2: Current ratio
Option 3: Current assets ratio
Option 4: Current liabilities ratio
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