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Accounting Ratios Quiz

Class XII
Accountancy
Accounting Ratios
14 questions
HARD

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1. What does the current ratio measure?

Liquidity position of a company · Profitability of a company · Operational efficiency · Market valuation

2. Which ratio indicates the proportion of debt to equity in a company?

Debt to Equity Ratio · Current Ratio · Gross Profit Ratio · Return on Equity

3. The formula for calculating the quick ratio is:

(Current Assets - Inventory) / Current Liabilities · Current Assets / Current Liabilities · Net Profit / Total Assets · Gross Profit / Sales

4. Which of the following ratios is a measure of profitability?

Return on Investment · Current Ratio · Debt to Equity Ratio · Inventory Turnover Ratio

5. What does the inventory turnover ratio indicate?

Efficiency in managing inventory · Debt management · Liquidity position · Profitability of sales