A low stock turnover ratio indicates: Option 1: over investment in stock Option 2: solvency position Option 3: monopoly situation Option 4: none of the above

The answer is 'over investment in stock'. View full solution:

CUET Accountancy - A low stock turnover ratio indicates: | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Financial Statements

Easy

over investment in stock

solvency position

monopoly situation

none of the above

✅ Correct Option: 1

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Match List I with List II

List I	List II
A. Debt Equity Ratio	I. Primarily indicates the rate of external funds in financing assets.
B. Total assets to Debt ratio	II. Higher proportion provides security to creditors
C. Proprietary ratio	III. It reveals the efficiency of business in utilization of funds
D. Return on Investment	IV. It measures degree of indebtness of an enterprise

Choose the correct answer from the options given below: