851. Debt-equity ratio is a sub-part of
A. Short-term solvency ratio
B. Long-term solvency ratio
C. Debtors turnover ratio
D. None of the above

852. Liquid assets is determined by
A. Current assets-stock-Prepaid expenses
B. Current assets +stock+ prepaid expenses
C. Current assets +Prepaid expenses
D. None of the above

853. Which of the following is not included in current assets?
A. Debtors
B. Stock
C. Cash at bank
D. Cash in hand

854. Higher the ratio, the more favorable it is, doesn’t stands true for
A. Operating ratio
B. Liquidity ratio
C. Net profit ratio
D. Stock turnover ratio

855. The most precise test of liquidity is
A. Quick ratio
B. Current ratio
C. Absolute Liquid ratio
D. None of the above

856. Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.
A. Rs 54,000
B. Rs 60,000
C. Rs 1, 62,000
D. None of the above

857. Collection of debtors
A. Decreases current ratio
B. Increases current ratio
C. Has no effect on current ratio
D. None of the above

858. In the context of Funds Flow Analysis, the word “funds” is used to define
A. Net Working capital
B. Total current assets-Total current liabilities
C. Both a and b
D. None of the above.

859. During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds.
A. Net outflow of Rs 15,000
B. Net inflow of Rs 15,000
C. Neither inflow nor outflow
D. None of the above

860. Which of the following are Non-current assets?
A. Land, Building and plant
B. Leasehold property
C. Computer software
D. All of the above

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