Question : Which of the following statements is not true?

Option 1: The current ratio establishes a relationship between Current Assets and Current Liabilities.

Option 2: Current Ratio $=\frac{\text { Current Assets }}{\text { Current Liabilities }}$

Option 3: It measures the ability of the firm to meet its current liabilities within 12 months from the date of the Balance Sheet or within the period of the operating cycle.

Option 4: The current Ratio of 1:1 is considered an ideal ratio

Question : Liquidity refers to the ability of the firm to meet its ______________.

Option 1: Current Liabilities

Option 2: Non- Current Liabilities

Option 3: Fixed Assets

Option 4: 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 

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 

Question : ---------------- are the assets which are likely to be converted into cash or cash equivalents within 12 months from the date of the Balance Sheet or within the period of an operating cycle. 

Option 1: Liquid Assets 

Option 2: Current Assets 

Option 3: Current liabilities 

Option 4: Total Assets