Match the LIST-I with LIST-II
LIST-I LIST-II A. Liquidity Ratio(s) I. Measure long term financial stability B. Solvency Ratio(s) II. Measure to analyse the earning capacity C. Profitability Ratio(s) III. Measure ability to pay short-term obligation D. Activity Ratio (s) IV. Measure utilisation of resources
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I | LIST-II | ||
|---|---|---|---|
| A. | Liquidity Ratio(s) | I. | Measure long term financial stability |
| B. | Solvency Ratio(s) | II. | Measure to analyse the earning capacity |
| C. | Profitability Ratio(s) | III. | Measure ability to pay short-term obligation |
| D. | Activity Ratio (s) | IV. | Measure utilisation of resources |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 4
Liquidity ratios test the ability to meet short-term obligations (III). Solvency ratios test long-term financial stability and the ability to repay long-term debt (I). Profitability ratios measure earning capacity (II). Activity or turnover ratios measure how efficiently resources are utilised (IV).
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