Acid Test Ratio

Q. Liquid ratio is also known as ratio.

1. current
2. inventory
3. debt-equity
4. acid test

Q.

Quick Assets = Current assets - ?

1. Stock

2. Prepaid expenses

3. Advance tax

4. All of these

Q.

The ideal level of liquid ratio is ______

1. 4:4

2. 3:3

3. All of these

4. 5:5

Q.

Liquid ratio is also known as ___

1. Quick ratio

2. Acid test ratio

3. Both Quick ratio & Acid test ratio

4. Stock turnover ratio

Q.

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

1. True

2. False

Q.

What is the journal entry for fixed assets?

Q.

What is meant by cash equivalents?

Q. Ideal Liquid Ratio is:

1. 1:2
2. 1:1
3. 2:1
4. 0:1

Q.

___ = Quick Assets : Current Liabilities

1. Liquid ratio

2. Current ratio

3. Debt equity ratio

4. None of these

Q. assets means cash or cash equivalents which can be easily converted to cash in a very short time.

1. Liquid
2. Current
3. Fixed
4. Non-current

Q.

Is cash an asset?

Q. What are liquidity ratios?
Discuss the importance of current and liquid ratio.

Q. Explain the terms : Cash equivalents, Cash flows.

Q. ratio = Quick Assets / Current Liabilities

1. Current
2. Liquid
3. Debt-equity
4. Inventory

Q. From the following details find out the total sales.

Particulars	Rs.
Opening Debtors	$10,200$
Cash received from debtors	$30,400$
Returns Inwards	$2,700$
Bad debts	$1,200$
Debtors at end	$13,800$
Cash Sales	$28,400$

1. Rs. $66,500$
2. Rs. $66,300$
3. Rs. $66,000$
4. Rs. $65,000$

Q.

The ideal level of liquid ratio is

Q. What is cash and cash equivalents while preparing cash flow statement?

Q. From following which are fictitious assets?

1. Preliminary expence
2. Debtors
3. All of the above
4. Deferred revenue expence

Q.

How to find fixed assets on the balance sheet?

Q. If the financial institution may like to keep margin of $25\%$ on assets. If the tangible assets are $80\%$ while intangible assets are $20\%$, then maximum finance that FIs will give will be _____________.

1. $75\%$
2. $60\%$
3. $100\%$
4. $80\%$

Q. Which of the following is current assets or current liabilities?

1. Cash
2. Land
3. Prepaid Expense
4. Goodwill
5. Trade payables
6. Machinery
7. Trade Receivable
8. Bank Balance

Q. Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

1. True
2. False

Q. Assets very easily convertible into cash are ___________.

1. Current Asset
2. Fixed assets
3. Liquid assets
4. Floating assets