Question

Which of the most commonly used ratios for controlling?

Options

• Liquidity Ratio

• Solvency Ratio

• Profitability Ratios

• All of the above

Answer 1

All of the above

Explanation -
The most regularly used ratios are listed below to maintain control.

1. The liquidity ratio is used to determine a company's short-term solvency.
2. Solvency Ratio, which is used to determine a company's long-term solvency.
3. Profitability Ratios, which are used to determine a company's profitability.
4. Turnover Ratios, which are used to determine the efficiency of activities based on resource utilisation.