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
Correct Answer: Current ratio
Solution : To calculate the working capital ratio, divide total current assets by total current liabilities. As a result, it's also referred to as the current ratio. Option 2 is the correct answer.
Question : Which of the following is the other name for liquid ratio?
Option 1: Quick ratio
Option 3: Working capital ratio
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 : Equity Share Capital Rs.4,00,000; General Reserve Rs.2,40,000;Debentures Rs.3,20,000; Current Liabilities Rs.80,000 On the above information find out the Debt-Equity Ratio.
Option 1: 1:2
Option 2: 1:3
Option 3: 1:4
Question : Which of the following statements is incorrect?
Option 1: Working Capital = Current Assets - Current Liabilities
Option 2: Current Liabilities = Total Assets - Non-Current Liabilities - Shareholder's fund
Option 3: Working Capital = Equity Share Capital + Reserves & Surplus - Long Term Loan - Non-Current Assets
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