Which one of the following statements is true? Option 1: Liquidity ratios measure long term solvency of a concern. Option 2: Solvency ratio is a part of long term solvency Option 3: Stock is part of liquid assets. Option 4: Gross profit ratio measures overall profitability of a concern.

The answer is 'Solvency ratio is a part of long term solvency'. View full solution:

CUET Accountancy - Which one of the following statements is true? | PYQs + Solutions

CUET Accountancy 2022 8 Aug Shift 2

Financial Statements

Medium

Liquidity ratios measure long term solvency of a concern.

Solvency ratio is a part of long term solvency

Stock is part of liquid assets.

Gross profit ratio measures overall profitability of a concern.

✅ Correct Option: 2

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