Leverage ratios are also known as -------------- ratios a) Short term solvency ratios b) Long term solvency ratios c) Solvency ratio d) Liquidity ratio

Leverage ratios are also known as -------------- ratios
a) Short term solvency ratios
b) Long term solvency ratios
c) Solvency ratio
d) Liquidity ratio
by

1 Answer

Answer :

b) Long term solvency ratios
by

Related questions

The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Description : The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Last Answer : c) Liquidity ratio

Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Last Answer : b) Short term

The ratio that highlight the end result of business activities are known as ---------------- ratios a) Liquidity b) Leverage c) Activity d) Profitability

Description : The ratio that highlight the end result of business activities are known as ---------------- ratios a) Liquidity b) Leverage c) Activity d) Profitability

Last Answer : d) Profitability

Stock turn over ratio is an example of ------------------- a) Liquidity ratio b) Leverage ratio c) Profitability ratios d) Activity ratios

Description : Stock turn over ratio is an example of ------------------- a) Liquidity ratio b) Leverage ratio c) Profitability ratios d) Activity ratios

Last Answer : d) Activity ratios

By computing current ratio ---------------- solvency of a concern is assessed a) Short term b) Long term c) Liquidity d) Profitability

Description : By computing current ratio ---------------- solvency of a concern is assessed a) Short term b) Long term c) Liquidity d) Profitability

Last Answer : a) Short term

Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios

Description : Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios

Last Answer : c) Liquid ratio

---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Description : ---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Last Answer : d) Leverage

Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio

Description : Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio

Last Answer : d) Solvency ratio

Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio

Description : Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio

Last Answer : a) Operating ratio

Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability

Description : Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability

Last Answer : a) efficiency

Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Description : Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Last Answer : c) Market strength

Current ratio is an example of -------------------- a) Leverage ratio b) Liquidity ratio c) Activity ratio d) Turnover ratio

Description : Current ratio is an example of -------------------- a) Leverage ratio b) Liquidity ratio c) Activity ratio d) Turnover ratio

Last Answer : b) Liquidity ratio

The efficiency of the management can be measured with the help of ------------------ a) Activity ratio b) Leverage ratio c) Liquidity ratio d) Profitability ratio

Description : The efficiency of the management can be measured with the help of ------------------ a) Activity ratio b) Leverage ratio c) Liquidity ratio d) Profitability ratio

Last Answer : a) Activity ratio

Debtors turnover ratio measures---------- a) Short term solvency b) Operating efficiency c) Long term solvency d) Credit policy

Description : Debtors turnover ratio measures---------- a) Short term solvency b) Operating efficiency c) Long term solvency d) Credit policy

Last Answer : a) Short term solvency

Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio

Description : Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio

Last Answer : d) Long term solvency ratio

Debt equity ratio is an example of ---------------- ratios a) Balance sheet ratio b) Profit & loss account ratio c) Mixed ratio d) Liquidity ratio

Description : Debt equity ratio is an example of ---------------- ratios a) Balance sheet ratio b) Profit & loss account ratio c) Mixed ratio d) Liquidity ratio

Last Answer : a) Balance sheet ratio

Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability

Description : Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability

Last Answer : a) solvency

Ratios may be used as a measure of ------------- a) Effiency b) Solvency c) Profitability d) None of the above

Description : Ratios may be used as a measure of ------------- a) Effiency b) Solvency c) Profitability d) None of the above

Last Answer : a) Effiency

Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio

Description : Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio

Last Answer : a) Interest coverage ratio

Capital gearing ratio is ___________. (a) Market test ratio (b) Long-term solvency ratio (c) Liquid ratio (d) urnover ratio

Description : Capital gearing ratio is ___________. (a) Market test ratio (b) Long-term solvency ratio (c) Liquid ratio (d) urnover ratio

Last Answer : (b) Long-term solvency ratio

Long term solvency of a firm can be measured by a) Current ratio b) Net profit ratio c) Gross profit ratio d) Debt equity ratio

Description : Long term solvency of a firm can be measured by a) Current ratio b) Net profit ratio c) Gross profit ratio d) Debt equity ratio

Last Answer : d) Debt equity ratio

he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Description : he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Last Answer : a) Debt equity ratio

Rol measures----- a) Profitability in relation to investment b) Profitability in relation to sales c) Operating efficiency d) Long term solvency

Description : Rol measures----- a) Profitability in relation to investment b) Profitability in relation to sales c) Operating efficiency d) Long term solvency

Last Answer : a) Profitability in relation to investment

Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth

Description : Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth

Last Answer : c) Efficiency

Solvency ratio indicates----------------- a) Credit worthiness b) Activity c) Profitability d) None of these

Description : Solvency ratio indicates----------------- a) Credit worthiness b) Activity c) Profitability d) None of these

Last Answer : a) Credit worthiness

Lower stock turnover ratio indicates------------------------------- a) Solvency position b) Monopoly situation c) Over investment in inventory d) None of these

Description : Lower stock turnover ratio indicates------------------------------- a) Solvency position b) Monopoly situation c) Over investment in inventory d) None of these

Last Answer : c) Over investment in inventory

Ratio of net profit before interest and tax to sales is------------------------------ a) Solvency ratio b) Capital gearing c) Operating profit ratio d) None of these

Description : Ratio of net profit before interest and tax to sales is------------------------------ a) Solvency ratio b) Capital gearing c) Operating profit ratio d) None of these

Last Answer : c) Operating profit ratio

The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio

Description : The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio

Last Answer : b) Solvency ratio

The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset

Description : The ratio which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset

Last Answer : b) Proprietary ratio

Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit

Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit

Last Answer : b) The working capital position

The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ a) Net profit ratio b) Gross profit ratio c) Current ratio d) Liquid ratios

Description : The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ a) Net profit ratio b) Gross profit ratio c) Current ratio d) Liquid ratios

Last Answer : b) Gross profit ratio

Example of activity ratios ------------------------ a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Stock turn over ratio

Description : Example of activity ratios ------------------------ a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Stock turn over ratio

Last Answer : d) Stock turn over ratio

Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Description : Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Last Answer : d) Ratio analysis

Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these

Description : Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these

Last Answer : a) Equity

Liquidity ratios are expressed in A. Pure ratio form B. Percentage C. Rate or time D. None of the above

Description : Liquidity ratios are expressed in A. Pure ratio form B. Percentage C. Rate or time D. None of the above

Last Answer : A. Pure ratio form

When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Description : When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Last Answer : b) Vertiacal analysis

In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Description : In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Last Answer : c. more liquid than prepaid expenses.

The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.

Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.

Last Answer : b. liquidity.

On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.

Description : On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.

Last Answer : c. in the order of liquidity.

Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of working capital management are profitability and liquidity C. Permanent current assets should be financed from long-term sources if a moderate or matching policy is adopted D. Conservative financing policies use short-term funds to finance only part of fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier

Ratios help the management in evolving market strategies through ----------- a) Inter firm comparison b) Intra firm comparison c) Ratios d) None of the above

Description : Ratios help the management in evolving market strategies through ----------- a) Inter firm comparison b) Intra firm comparison c) Ratios d) None of the above

Last Answer : a) Inter firm comparison

Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Description : Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Last Answer : a) Forecasting

An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Description : An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Last Answer : c) Cash flow statement

________ is characteristic of liquidity ratios. (a) Organization’s ability to meet its current debt obligations (b) Organization’s use of debt to finance its assets and whether it’s able to meet the interest payments on the debt ;(c) How efficiently the firm is using its assets ;(d) None of given options

Description : ________ is characteristic of liquidity ratios. (a) Organization's ability to meet its current debt obligations (b) Organization's use of debt to finance its assets and whether it's able to meet the interest ... the debt ;(c) How efficiently the firm is using its assets ;(d) None of given options

Last Answer : (a) Organization’s ability to meet its current debt obligations 

_________ is also known as working capital ratio. (a) Current ratio (b) Quick ratio ((c) Liquid ratio (d) Debt-equity ratio

Description : _________ is also known as working capital ratio. (a) Current ratio (b) Quick ratio ((c) Liquid ratio (d) Debt-equity ratio

Last Answer : (a) Current ratio

Debtors turnover ratio also known as---------- a) Payable turnover b) Receivable turnover ratio c) Creators turnover ratio d) Debtors velocity

Description : Debtors turnover ratio also known as---------- a) Payable turnover b) Receivable turnover ratio c) Creators turnover ratio d) Debtors velocity

Last Answer : b) Receivable turnover ratio

The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c. relationship between current assets and current liabilities. d. relationship between short-term and long-term liabilities.

Description : The most important information needed to determine if companies can pay their current obligations is the a. net income for this year. b. projected net income for next year. c. ... between current assets and current liabilities. d. relationship between short-term and long-term liabilities.

Last Answer : c. relationship between current assets and current liabilities.

Fund flow statement are very useful in planning intermediate and ----------- financing. a) Short term b) Long term c) Medium term d) None of these

Description : Fund flow statement are very useful in planning intermediate and ----------- financing. a) Short term b) Long term c) Medium term d) None of these

Last Answer : a) Short term

In deciding the optimal level of current assets for the firm, management is confronted with . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing

Description : In deciding the optimal level of current assets for the firm, management is confronted with  . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing

Last Answer : A. a trade-off between profitability and risk

The objectives of Cash Flow Statement are (i) Analysis of cash position (ii) Short-term cash planning (iii) Evaluation of liquidity (iv) Comparison of operating Performance A. Both (i) and (ii) B. Both (i) and (iii) C. Both (ii) and (iv) D. (i), (ii), (iii), (iv)

Description : The objectives of Cash Flow Statement are (i) Analysis of cash position (ii) Short-term cash planning (iii) Evaluation of liquidity (iv) Comparison of operating Performance A. Both (i) and (ii) B. Both (i) and (iii) C. Both (ii) and (iv) D. (i), (ii), (iii), (iv)

Last Answer : D. (i), (ii), (iii), (iv)