Earning Capacity of a Company is measured by: Option 1: Working Capital Ratio Option 2: Profitability Ratio Option 3: Solvency Ratio Option 4: Liquidity Ratio

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

CUET Accountancy - Earning Capacity of a Company is measured by: | PYQs + Solutions

CUET Accountancy 2022 20 Aug Shift 2

Financial Statements

Easy

Working Capital Ratio

Profitability Ratio

Solvency Ratio

Liquidity Ratio

✅ Correct Option: 2

Related questions:

22 May Shift 2

Profit after tax and interest is Rs 1,60,000.

Tax rate is 20%

10% long term borrowing is Rs 20,00,000

Find profit before tax and after interest

8 Aug Shift 2

When the ratio is low, the firm is said to have favourable indication.

3 June Shift 2

To assess the long term solvency of the business, which of the following ratios are needed?

(A) Interest coverage ratio

(B) Proprietary ratio

(D) Debt to capital employed ratio

Choose the correct answer from the options given below: