Ratio Questions Flashcards
1
Q
An ideal current ratio should be:
a) 2:1
b) 1:1
c) 1:2
d) none of these
A
A
2
Q
Current assets include:
a) inventory
b) trade receivable
c) current investment
d) cash and bank balance
e) all of these
A
E
3
Q
Current liabilities include
a) bank overdraft
b) trade payable
c) provision factor
d) outstanding expense
e) all of these
A
E
4
Q
Idea liquid ratio should be:
a) 2:1
b) 1:1
c) 1:2
d) 4:1
A
B
5
Q
Current assets include
a) building
b) land
c) current investment
d) furniture
e) all of these
d) none of these
A
C
6
Q
Which ratio is an indication of the speed a company collects its debts
A
Receivables turnover ratio
