Question

Match the items of List-1 with those of List -II and indicate the correct code:

Answer 1

1. Acid test ratio measure the short term liquidity of the company.
2. Debt Service Coverage Ratio measures that to what extent are the profits made sufficient to service or pay the debt holders.
3. Debt-Equity ratio measures the long term solvency of the company by analyzing the capital structure of the company.
4. Stock turnover ratio measures the level of activity being undertaken and the time within which the stock is being used or sold.