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प्रश्न
Which one of-the following statement is incorrect?
पर्याय
Liquidity ratios are calculated to measure the short-term solvency of the business.
Current ratio is also known as Acid Test Ratio.
Solvency ratios are calculated to determine the ability of the business to service its debt in the long run.
Proprietary ratio expresses the relationship of proprietor's funds to net assets/total assets.
उत्तर
Current ratio is also known as Acid Test Ratio.
Explanation:
Quick ratio is also known as Acid Test Ratio, which measures a company's ability to meet its short-term financial obligation.
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संबंधित प्रश्न
The current ratio of X. Ltd is 2:1. State with reason which of the following transaction would
i. Increase or ii. decrease or iii. not change the ratio
1. Included in the trade payables was a bills payable of Rs.9,000 which was met on maturity.
2. Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.
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Current ratio of Adaar Ltd. is 2.5:1. Accountant wants to maintain it at 2:1. Following options are available.
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- He can purchase goods on credit
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Liquid assets = ______.
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A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50 000, having a Current Ratio of 2:1. What will be the company's revised Current Ratio after it collects ₹ 20,000 cash from its debtors of ₹ 25,000, the remaining debtors being bad?
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Calculate Debt to Total Assets Ratio of Moonlight Ltd. (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Property, Plant & Equipment and Intangible Assets | 20,00,000 |
| Shares of XYZ Bank Ltd. | 1,00,000 |
| Long-term Loans and Advances | 1,00,000 |
| Current Assets | 10,00,000 |
| Current Liabilities | 4,00,000 |
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Calculate Quick Ratio (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Total Current Assets | 90,000 |
| Working Capital | 60,000 |
| Prepaid Expenses | 30,000 |
What is the difference between Total Assets and Current Liabilities?
A company has a Quick Ratio of 1.8 : 1. Mention whether this ratio will improve/reduce/not change after it sells a machine worth ₹ 1,20,000 at a loss of ₹ 30,000.
Calculate the Current Ratio (up-to two decimal places) of Windlas Biotech Ltd. from the following extract of its Annual Report of 2021-22.
| Particulars | (₹) (in millions) |
| Opening Inventory of consumables (raw materials) | 264.79 |
| Closing Inventory of consumables (raw materials) | 389.85 |
| Opening Inventory of finished goods and work-in-progress | 149.82 |
| Closing Inventory of finished goods and work-in-progress | 197.24 |
| Current Assets (other than inventory of consumables and of finished goods and work-in-progress) | 3,229.23 |
| Current Liabilities | 936.52 |
