Question : Which of the following will increase the current ratio?

Option 1: Cash Purchase

Option 2: Cash received from bills receivable

Option 3: Cash Purchase 

Option 4: Payment made to trade creditor 

Question : Which measure of liquidity often excludes the asset with the lowest liquidity?

Option 1: Current ratio, Bills receivable

Option 2: Liquidity ratio, Bills receivables

Option 3: Current ratio.Stock

Option 4: Liquid ratio and stock

Question : If the current ratio were 2:1, how the purchase of goods on credit will affect the current ratio?

Option 1: Decrease gross profit ratio

Option 2: Have no effect on the Current ratio

Option 3: Increase Current ratio

Option 4: Decrease the Current ratio

Question : Cash balance Rs. 5000. Trade payable Rs. 40,000. Inventory Rs. 50,000. Trade receivable Rs. 60,000. Prepaid expenses Rs. 5,000, Current ratio will be 

Option 1: 2:1

Option 2: 3:1

Option 3: 2.5:1

Option 4: None of the above

Question : Cash balance Rs. 5000. Trade payable Rs. 40,000. Inventory Rs. 50,000. Trade receivable Rs. 60,000. Prepaid expenses Rs. 5,000, Current ratio will be 

Option 1: 2:1

Option 2: 3:1

Option 3: 2.5:1

Option 4: None of the above

Question : ------------------- ratio indicates the relationship between credit revenue from Operations and average trade receivables during the year.

Option 1: Inventory turnover ratio 

Option 2: Capital turnover ratio 

Option 3: Trade receivable turnover ratio 

Option 4: Trade payable turnover ratio