The following groups of ratios are primarily measure risk:

liquidity, activity, and profitability

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liquidity, activity, and inventory

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liquidity, activity, and debt

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liquidity, debt and profitability

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Solution

The correct option is D
liquidity, debt and profitability

The following groups of ratios are primarily measure risk:

liquidity, debt and profitability

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Similar questions

Q. To test the liquidity of a concern, which of the following ratios are useful?
I. Acid test ratio
II. Capital turnover ratio
III. Bad debts to sales ratio
IV. Inventory turnover ratio
Select the correct answer using the codes given.

Q. The current ratio provides a better measure of overall liquidity only when a firm’s inventory cannot easily be converted into cash. If inventory is liquid, the quick ratio is a preferred measure of overall liquidity. Explain.

Q. Assertion :The active mass of pure solid and pure liquid is taken reactions equally. Reason: The active mass of pure solids and liquids depends on density and molecular mass. The density and molecular mass of pure liquids and solids are constant.

From the following information calculate:

(i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working capital Ratio:

	Rs
Revenue from Operations	25,20,000
Net Profit	3,60,000
Cast of Revenue from Operations	19,20,000
Long-term Debts	9,00,000
Trade Payables	2,00,000
Average Inventory	8,00,000
Current Assets	7,60,000
Fixed Assets	14,40,000
Current Liabilities	6,00,000
Net Profit before Interest and Tax	8,00,000

Q. From the following information calculate
(i) Gross Profit Ratio
(ii) Inventory Turnover Ratio
(iii) Current Ratio
(iv) Liquid Ratio
(v) Net Profit Ratio
(vi) Working Capital Ratio

$\begin{matrix} Items & Rs. Sales & 25, 20, 000 Net Profit & 3, 60, 000 Cost of Sales & 19, 20, 000 Long term Debts & 9, 00, 000 Creditors & 2, 00, 000 Average Inventory & 8, 00, 000 Current Assets & 7, 60, 000 Fixed Assets & 14, 40, 000 Current Liabillities & 6, 00, 000 Net Profit Before Interest and Tax & 8, 00, 000 \end{matrix}$

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The following groups of ratios are primarily measure risk:

The correct option is D liquidity, debt and profitability The following groups of ratios are primarily measure risk: liquidity, debt and profitability

The correct option is D
liquidity, debt and profitability

The following groups of ratios are primarily measure risk:

liquidity, debt and profitability