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
Correct Answer: Liquidity Ratio
Solution : The current ratio is a liquidity ratio that measures a company's ability to pay short-term or one-year obligations. Hence option 4 is the correct answer.
Question : The working capital ratio is part of __________ ratio?
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 : Which of the following is the Capital Gearing Ratio?
Option 1: Profitability Ratio
Option 2: Activity Ratio
Option 3: Long-term Solvency Ratio
Option 4: None of the above
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
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