Discussion
Match the items of List - I with the items of List - II and select the correct answer using the codes given below the lists :
| List - I | List - II |
|---|---|
| (a) Leverage Ratio | (i) Short-term solvency |
| (b) Liquidity Ratio | (ii) Earning capacity |
| (c) Turnover Ratio | (iii) Relationship between debt and equity |
| (d) Profitability Ratio | (iv) Efficiency of Asset Management |
Answer: D
The matching is: the leverage ratio with the relationship between debt and equity (iii), the liquidity ratio with short-term solvency (i), the turnover ratio with the efficiency of asset management (iv), and the profitability ratio with earning capacity (ii), giving iii i iv ii, option D. Leverage ratios compare borrowed funds with owners' funds, liquidity ratios test the ability to meet current obligations, turnover ratios show how well assets are used, and profitability ratios show earning power. Options A, B and C pair at least two ratios with the wrong meaning.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development