Question : Which of the following statements is not true with respect to liquid ratio?

Option 1: liquid ratio is considered more dependable than current ratio

Option 2: liquid ratio less dependable than current ratio

Option 3: Inventory is included in liquid assets

Option 4: Ideal liquid ratio is 1: 1

Question : Which of the following is the correct formula for "Current Ratio"?

Option 1: Liquid Assets/Current Liabilities

Option 2: Current Assets/Current Liabilities

Option 3: Fixed Assets/Current Assets

Option 4: Liquid Assets/Current Assets

Question : The Current Liabilities of a Company are Rs.7,00,000. Its current ratio is 3.5: 1 and its acid test ratio is 1.5: 1. The value of Current assets, Liquid assets and Inventories are

Option 1: Current assets 10,50,000. Liquid assets 6,12,500. Stock 4,37,500

Option 2: Current assets 10,50,000. Liquid assets 6,22,500, stock 4,27,500

Option 3: Current assets 6,22,500. Liquid assets Rs 10,50,000. Stock 4,27,500

Option 4: Current assets24,50,000, liquid assets 10,50,000. Stock 14,00,000

Question : The Current Liabilities of a Company are Rs.7,00,000. Its current ratio is 3.5: 1 and its acid test ratio is 1.5: 1. The value of Current assets, Liquid assets and Inventories are

Option 1: Current assets 10,50,000. Liquid assets 6,12,500. Stock 4,37,500

Option 2: Current assets 10,50,000. Liquid assets 6,22,500, stock 4,27,500

Option 3: Current assets 6,22,500. Liquid assets Rs 10,50,000. Stock 4,27,500

Option 4: Current assets24,50,000, liquid assets 10,50,000. Stock 14,00,000

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