Question : Which of the following ratios is also known as the working capital ratio?

Option 1: Liquid ratio

Option 2: Current ratio

Option 3: Debt-Equity ratio

Option 4: None of the above

Question : Liquid Ratio is also known as:

Option 1: Current Ratio

Option 2: Quick Ratio

Option 3: Capital Ratio

Option 4: None of these

Question : Which of the following statements is incorrect with respect to working capital turnover ratio?

Option 1: Working Capital Turnover Ratio has been calculated on the basis of 'Revenue from Operations'.

Option 2: A high working capital turnover ratio shows efficient use of working capital and quick turnover of current assets like inventory and trade receivables.

Option 3: A low working capital turnover ratio indicates under-utilisation of working capital.

Option 4: None of the above.

Question : Which of the following statements is incorrect with respect to working capital turnover ratio?

Option 1: Working Capital Turnover Ratio has been calculated on the basis of 'Revenue from Operations'.

Option 2: A high working capital turnover ratio shows efficient use of working capital and quick turnover of current assets like inventory and trade receivables.

Option 3: A low working capital turnover ratio indicates under-utilisation of working capital.

Option 4: None of the above.

Question : Which of the following statements is incorrect?

Option 1: The quick ratio indicates whether the firm is in a position to pay its current liabilities within a month or immediately.

Option 2: The quick ratio is calculated by dividing liquid assets (Quick Current Assets) by current liabilities.

Option 3: 'Liquid assets' means those assets which will be converted into cash and cash equivalents very shortly.

Option 4: None of the above