The mathematical expression that provides a measure of the relationship between two figures is called

(a)

Conclusion

(b)

Ratio

(c)

Model

(d)

Decision

Current ratio indicates

(a)

Ability to meet short term obligations

(b)

Efficiency of management

(c)

Profitability

(d)

Long term solvency

Current assets excluding inventory and prepaid expenses is called

(a)

Reserves

(b)

Tangible assets

(c)

Funds

(d)

Quick assets

Debt equity ratio is a measure of

(a)

Short term solvency

(b)

Long term solvency

(c)

Profitability

(d)

Efficiency

Match List I with List II and select the correct answer using the codes given below:

List I	List II
(i) Current ratio	1. Liquidity
(ii) Net profit ratio	2. Efficiency
(iii) Debt-equity ratio	3. Long term solvency
(iv) Inventory turnover ratio	4. Profitability

(a)

(i)	(ii)	(iii)	(iv)
1	4	3	2

(b)

(i)	(ii)	(iii)	(iv)
3	2	4	1

(c)

(i)	(ii)	(iii)	(iv)
4	3	2	1

(d)

(i)	(ii)	(iii)	(iv)
1	2	3	4

To test the liquidity of a concern, which of the following ratios are useful?
(i) Quick ratio
(ii) Net profit ratio
(iii) Debt-equity ratio
(iv) Current ratio
Select the correct answer using the codes given below:

(a)

(i) and (ii)

(b)

(i) and (iv)

(c)

(ii) and (iii)

(d)

(ii) and (iv)

Proportion of share holder's funds to total assets is called

(a)

Proprietary ratio

(b)

Capital gearing ratio

(c)

Debt equity ratio

(d)

Current ratio

Which one of the following is not correctly matched?

(a)

Liquid ratio – Proportion

(b)

Gross profit ratio – Percentage

(c)

Fixed assets turnover ratio – Percentage

(d)

Debt-equity ratio – Proportion

Current liabilities Rs. 40,000; Current assets Rs. 1,00,000 ; Inventory Rs. 20,000. Quick ratio is

(a)

1:1

(b)

2.5:1

(c)

2:1

(d)

1:2

Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

(a)

2 times

(b)

3 times

(c)

6 times

(d)

8 times