Financial Statements

Ratios

Easy

The ratios calculated to measure the short term commitments of business is

Liquidity Ratio

Activity Ratio

Profitability Ratio

Solvency Ratio

✅ Correct Option: 1

Liquidity ratios such as current ratio and quick ratio measure the ability of an enterprise to meet its short term obligations as they fall due. Solvency ratios deal with long term obligations, activity ratios measure efficiency of asset utilisation, and profitability ratios assess earning capacity.

2025: 14 May Shift 2

Return on Shareholders' Funds

2025: 3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Measure of liquidity	(I) Return on capital employed
(B) Measure of earning capacity	(II) Inventory turnover ratio
(C) Measure of activity of firm's inventory	(III) Profitability ratio
(D) Measure of Productive efficiency of funds	(IV) Current ratio

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Calulate Current Ratio from the following information:

Particulars (Rs.)	Amount (in Rs)
Inventories	60,000
Trade receivables	60,000
Advance tax	4,000
Cash and cash equivalents	50,000
Trade payables	1,30,000
Bank Overdraft	4,000

2026: 13 May Shift 1

Match List-I with List-II

List-I (ACCOUNTING RATIO)	List-II (CATEGORY)
(A) Total Assets to Debt Ratio	(I) Profitability Ratio
(B) Investment (Net assets) Turnover Ratio	(II) Solvency Ratio
(C) Acid-Test Ratio	(III) Activity Ratio
(D) Return on Investment	(IV) Liquidity Ratio

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Trade Receivable Turnover Ratio is-

2023: 11 June Shift 3

Identify the other name by which Liquid ratio is known :

The ratios calculated to measure the short term commitments of business is

Solution

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