Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Role of thumb for current ratio is 2: 1 (iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund A. Only (i), (ii) and (iii) are correct. B. Only (ii), (iii) and (iv) are correct. C. Only (ii) and (iii) are correct. D. All of the above.
Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Role of thumb for current ratio is 2: 1 (iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund A. Only (i), (ii) and (iii) are correct. B. Only (ii), (iii) and (iv) are correct. C. Only (ii) and (iii) are correct. D. All of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Role of thumb for current ratio is 2: 1 (iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund
A. |
Only (i), (ii) and (iii) are correct. |
B. |
Only (ii), (iii) and (iv) are correct. |
C. |
Only (ii) and (iii) are correct. |
D. |
All of the above. |
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