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Question
Match List I with List II and select the correct answer using the codes given below:
| List I | List II |
| (i) Current ratio | 1. Liquidity |
| (ii) Net profit ratio | 2. Efficiency |
| (iii) Debt-equity ratio | 3. Long term solvency |
| (iv) Inventory turnover ratio | 4. Profitability |
Options
(i) – 1,(ii) – 4,(iii) – 3,(iv) – 2
(i) – 3,(ii) – 2,(iii) – 4,(iv) – 1
(i) – 4,(ii) – 3,(iii) – 2,(iv) – 1
(i) – 1,(ii) – 2,(iii) – 3,(iv) – 4
Solution
(i) – 1,(ii) – 4,(iii) – 3,(iv) – 2
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| 1. Shareholders' funds | |
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| Equity share capital | 6,00,000 |
| (b) Reserves and surplus | 2,00,000 |
| 2. Non-current liabilities | |
| Long-term borrowings (Debentures) | 6,00,000 |
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| 5% Preference share capital | 1,00,000 |
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| Particulars | Amount ₹ |
| I EQUITY AND LIABILITIES | |
| 1. Shareholders Funds | |
| (a) Share capital | |
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| 6% Preference share capital | 2,00,000 |
| (b) Reserves and surplus | 1,50,000 |
| 2. Non-current Liabilities | |
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