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

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 other name for liquid ratio?

Option 1: Quick ratio

Option 2: Current ratio

Option 3: Working capital ratio

Option 4: None of the above

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 : Which of the following would increase the Quick Ratio if the quick ratio is 1.4: 1 and not change if the quick ratio is 1: 1?

Option 1: Purchase of goods on Credit of 2 months.

Option 2: Sale of goods costing Rs. 20,000 for Rs. 15,000 .

Option 3: Sale of an Office furniture (book value Rs.25,000) for Rs.5,000.

Option 4: B/R drawn on trade receivables for 3 months.