Identify the ratio which is not computed for evaluating solvency of the business. Option 1: Debt-Equity Ratio Option 2: Proprietary Ratio Option 3: Operating Ratio Option 4: Interest Coverage Ratio

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

CUET Accountancy - Identify the ratio which is not computed for evaluating solvency of the business. | PYQs + Solutions

CUET Accountancy 2023 29 May Shift 2

Financial Statements

Easy

Debt-Equity Ratio

Proprietary Ratio

Operating Ratio

Interest Coverage Ratio

✅ Correct Option: 3

Related questions:

13 May Shift 1

If, Total assets = Rs. 3,00,000

Non-current liabilities = Rs. 80,000

Shareholders fund = Rs. 2,00,000

Non-current assets:

Fixed assets = Rs. 1,60,000

Non-current investments = Rs. 1,00,000.

Then, Current Ratio is:

27 May Shift 2

Calculate 'Liquid Ratio' from the following information:

14 May Shift 1

Which of the following statements are True about ratio analysis-

(A) A ratio reflects quantitative and qualitative aspects of results.

(B) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount

(D) Ratios help in comparisons of a firm's results over a number of accounting periods as well as with other business enterprises.

Choose the correct answer from the options given below: