Question : With respect to the liquidity Ratio, which of the following statements is incorrect?

Option 1: “Liquidity” refers to the ability of the firm to meet its current liabilities.

Option 2: Liquidity is the ease with which assets may be converted into cash without loss.

Option 3: The liquidity ratios are also called 'long-term Solvency Ratios'.

Option 4: Short-term trade payables of the firm are primarily interested in the liquidity ratios of the firm.

Question : With respect to the liquidity Ratio, which of the following statements is incorrect?

Option 1: “Liquidity” refers to the ability of the firm to meet its current liabilities.

Option 2: Liquidity is the ease with which assets may be converted into cash without loss.

Option 3: The liquidity ratios are also called 'long-term Solvency Ratios'.

Option 4: Short-term trade payables of the firm are primarily interested in the liquidity ratios of the firm.

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 answers is correct?
A: The average collection period can be used to assess credit and collection policies.
B: The solvency ratios provide critical information for the firm's long-term operation.

Option 1: Option A

Option 2: Option B

Option 3: Both of the above

Option 4: None of the above

Question : Which of the following is not the objective of Ratio Analysis?

Option 1: Calculate profit and loss of the business 

Option 2: To provide deeper analysis of the liquidity, solvency, activity and profitability of the business.

Option 3: To provide information for making time-series analysis, i.e., for making comparison of a firm’s present ratios with its past ratios.

Option 4: To provide information useful for making estimates and preparing the plans for the future