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Question 14 of 38

Q.Match the following :

(1) Current ratio —
(i) Liquidity
(2) Net profit ratio —
(ii) Efficiency
(3) Debt-equity ratio —
(iii) Long-term solvency
(4) Inventory turnover ratio —
(iv) Profitability
(a) (1)-(i), (2)-(ii), (3)-(iii), (4)-(iv)
(b) (1)-(i), (2)-(iv), (3)-(iii), (4)-(ii)
(c) (1)-(iii), (2)-(ii), (3)-(iv), (4)-(i)
(d) (1)-(iv), (2)-(iii), (3)-(ii), (4)-(i)
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020MCQ· 1mImportance★★★★★
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Correct matching is (1)-(i), (2)-(iv), (3)-(iii), (4)-(ii) — option (b).

Matching each ratio to what it measures:

RatioMeasuresMatch
(1) Current ratioLiquidity(i)
(2) Net profit ratioProfitability(iv)
(3) Debt-equity ratioLong-term solvency(iii)

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