Match the LIST-I with LIST-II, LIST-I, LIST-II, A., The ratio provides a measure of the capacity of the business to meet its short-term obligations without any flaw., I. Total Assets to Debt Ratio, B., This ratio measures the extent of the coverage of long-term debts by assets., II. Interest Coverage Ratio, C., This ratio indicates the number of times receivables are turned over and converted into cash in an accounting period., III. Quick Ratio, D., It is a ratio which deals with the servicing of interest on loans. It is a measure of security of interest payable on long-term debts., IV. Trade Receivables Turnover Ratio, Choose the correct answer from the options given below:

Question

Match the LIST-I with LIST-II | LIST-I | | LIST-II | |---|---|---| | A. | The ratio provides a measure of the capacity of the business to meet its short-term obligations without any flaw. | I. Total Assets to Debt Ratio | | B. | This ratio measures the extent of the coverage of long-term debts by assets. | II. Interest Coverage Ratio | | C. | This ratio indicates the number of times receivables are turned over and converted into cash in an accounting period. | III. Quick Ratio | | D. | It is a ratio which deals with the servicing of interest on loans. It is a measure of security of interest payable on long-term debts. | IV. Trade Receivables Turnover Ratio | Choose the correct answer from the options given below:

Accepted Answer

A-III, B-I, C-IV, D-II

Answer

A-I, B-II, C-III, D-IV

Answer

A-I, B-II, C-IV, D-III

Answer

A-III, B-IV, C-I, D-II

List-I	List-II
(A). Liquidity Ratio	(I). Receivable Turnover Ratio
(B). Solvency Ratio	(II). Quick Ratio
(C). Activity (or Turnover) Ratio	(III). Earning Per Share Ratio
(D). Profitability Ratio	(IV). Debt to Equity Ratio

List-I	List-II
(A) Liquidity Ratio	(I) Interest Coverage Ratio
(B) Profitability Ratio	(II) Acid-Test Ratio
(C) Solvency Ratio	(III) Fixed Assets Turnover Ratio
(D) Activity ratios	(IV) Return on Capital Employed Ratio

LIST-I		LIST-II
A.	The ratio provides a measure of the capacity of the business to meet its short-term obligations without any flaw.	I. Total Assets to Debt Ratio
B.	This ratio measures the extent of the coverage of long-term debts by assets.	II. Interest Coverage Ratio
C.	This ratio indicates the number of times receivables are turned over and converted into cash in an accounting period.	III. Quick Ratio
D.	It is a ratio which deals with the servicing of interest on loans. It is a measure of security of interest payable on long-term debts.	IV. Trade Receivables Turnover Ratio

Solution

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