961. Balance sheet is a statement of
A. Assets
B. Liability
C. Capital
D. All of the above

962. Balance sheets are prepared
A. Daily
B. Weekly
C. Monthly
D. Annually

963. The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
A. Liquidity ratio
B. Leverage ratios
C. Activity ratios
D. Profitability ratios

964. The measure of how efficiently the assets resources are employed by the firm is called
A. Liquidity ratio
B. Leverage ratios
C. Activity ratios
D. Profitability ratios

965. The following is (are) the current liability (ies)
A. Bills payable
B. Outstanding expenses
C. Bank overdraft
D. All of the above

966. Current ratio =
A. Quick assets / Current liabilities
B. Current assets / Current liabilities
C. Debt. / Equity
D. Current assets / Equity

967. A current ratio of ______ and above indicates that the availability of sufficient net working capital and the ability of the firm to meet current liabilities.
A. 1.33:1
B. 1.44:1
C. 1.55:1
D. 1.66:1

968. Liquid or Quick assets =
A. Current assets ā€“ (stock + work in progress)
B. Current assets + stock + work in progress
C.Current assets + stock) + work in progress
D.Current assets + work in progress) ā€“ stock

969. The following is also known as External Internal Equity ratio
A. Current ratio
B. Acid test ratio
C. Debt Equity ratio
D. Debt service coverage ratio

970. Lower the Debt Equity ratio
A. Lower the protection to creditors
B. Higher the protection to creditors
C. It does not affect creditors
D. None of the above

NOTE
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