The ratios calculated to measure the short term commitments of business is Option 1: Liquidity Ratio Option 2: Activity Ratio Option 3: Profitability Ratio Option 4: Solvency Ratio

The answer is 'Liquidity Ratio'. View full solution:

CUET Accountancy - The ratios calculated to measure the short term commitments of business is | PYQs + Solutions

CUET Accountancy 2022 15 July Shift 2

Financial Statements

Easy

Liquidity Ratio

Activity Ratio

Profitability Ratio

Solvency Ratio

✅ Correct Option: 1

Related questions:

13 May Shift 2

Average Trade payables is-

20 July Shift 1

Match List - I with List - II

List - I	List - II
(a) Working Capital Turnover Ratio	(i) $\frac{\text{Quick Assets}}{\text{Current liabilities}}$
(b) Acid Test Ratio	(ii) $\frac{\text{Operating Profit}}{\text{Rev. from operations}} \times 100$
(c) Operating Profit Ratio	(iii) $\frac{\text{Revenue from operation}}{\text{Working capital}}$
(d) Trade Payables Turnover Ratio	(iv) $\frac{\text{Net Credit Revenue from operation}}{\text{Average Trade payables}}$

Choose the correct answer from the options given below :

20 July Shift 1

Calculate Current Ratio from the following given information.

Liquid Ratio 0.75 : 1

Current Liabilities Rs. 1,80,000

Prepaid Expenses Rs. 20,000

Inventory Rs. 47,250