Question

Which one of the following is correct?

1. A ratio is an arithmetical relationship of one number to another number.
2. Liquid ratio is also known as acid test ratio.
3. Ideally accepted current ratio is 1: 1.
4. Debt equity ratio is the relationship between outsider’s funds and shareholders’ funds.

Options

• All (i), (ii), (iii) and (iv) are correct

• Only (i), (ii) and (iv) are correct

• Only (ii), (iii) and (iv) are correct

• Only (ii) and (iv) are correct

Answer 1

Only (i), (ii) and (iv) are correct