Liquidity ratios - class-XII
Description: liquidity ratios | |
Number of Questions: 53 | |
Created by: Naresh Verma | |
Tags: analysis of financial statements elements of accounts accounting ratio and analysis ratio analysis accountancy accounting ratios |
Which of the following items is not taken into account while computing quick ratio?
Which of the following liabilities are taken into account for acid test ratio?
(i) Trade creditors
(ii) Bank overdraft
(iii) Cash credit
(iv) Outstanding expenses
The excess of current assets over current liabilities is called as ___________.
What is the meaning of current ratio of less than one?
Suppliers and Creditors of a firm are interested in ______.
Which of the following ratios is termed as 'acid test ratio' or 'quick ratio'?
Quick ratio is calculated by using the following formula ___________________.
If the current ratio is $2 : 1$ and working capital is $Rs. 60,000$, what is the value of the current assets?
The current ratio is _________________________.
Which one of the following is not a leverage ratio?
Liquidity ratio is also known as :-
a. Quick ratio
b. Acid test ratio
c. Working capital ratio
d. Stock turnover ratio
Consider the following :
i)Basic defensive and interval ratio
ii)Current ratio
iii)Superquick ratio
iv)Quick ratio
Arrange these ratios in sequence to reflect the liquidity in descending order.
Which of the following is correct?
i.Liquidity ratios measure long term solvency of a concern.
ii.Inventory is a part of current assets.
iii.Rule of thumb for acid test ratio is 1 : 1.
iv.The amount of gross assets is equal to net capital employed.
The ideal level of liquid ratio is _______.
The appropriate ratio for indicating liquidity crisis is_________.
Which of the following is not included in current assets?
The most precise test of liquidity is ______________.
Current ratio is chiefly used to assess the .
The most rigorous test of liquidity is ___________.
Which of the following transaction change the current ratio?
Formula for current ratio is .
Ratio which comes under liquidity ratios is
The ability of the business to pay the amount due to stakeholders is calculated by ___________.
Which of the following statement(s) is/are true?
If a firm has realized its debtors and has paid off its creditors to the same extent then .
Which of the following is normally treated as a satisfactory ratio of current assets to current liabilities?
Which of the following items is not taken into account when computing current ratio?
A person whose assets are less than business liabilities is known as insolvent.
Cash in hand is the __________asset.
Sale of inventory for cash will cause the current ratio to __________.
Purchase of inventory on credit will cause the quick ratio to .
Which of the following transactions will change the current ratio?
The immediate solvency ratio is .
Current ratio is increased by :
1) Issue of redeemable debentures.
2) Selling of old machine for cash.
3) Converting debentures into equity capital.
4) Cash received from debtors.
Current ratio may be increased by .
The ability of a company to meet its short-term obligations known as .
Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of current liabilities?
Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of quick assets?
Quick assets include which of the following?
Current liabilities of a company were Rs. 1,75,000 and its current ratio was 2: 1. It paid Rs. 30,000 to a creditor. Calculate current ratio after payment :
For calculation of current ratio which of the following is relevant ?
Collection of sundry debtors would _______________.
Given that,
Current Ratio = 2.5
Acid-test ratio = 1.5
Net working capital = Rs. 60,000
The value of current liabilities will be ___________ .
Current Ratio $2.5$, Liquid Ratio $1.5$ and Working Capital $Rs. 60,000$. What is the amount of Current Assets?
To test the liquidity of a concern, which of the following ratios are useful?
I. Acid test ratio
II. Capital turnover ratio
III. Bad debts to sales ratio
IV. Inventory turnover ratio
Select the correct answer using the codes given.
Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs. 60,000. Determine value of stock.
Which one of the following is correct?
i) A ratio is an arithmetical relationship of one number to another number.
ii) Quick ratio is also known as acid test ratio.
iii) Rule of thumb for current ratio is $2:1$.
iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund.
'X' Ltd. has a liquid ratio of 2:1. If its stock is Rs. 40,000 and its current liabilities are of Rs. 1 Lakh, What will be the current ratio________.
The appropriate ratio for indicating liquidity crisis is .
Which of the following items is not taken into account when computing quick ratio?
When current ratio is $2 : 1$, an equal increase in current assets and current liabilities would .
Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of stock?
Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of current assets?