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Question

A very high current ratio indicates which of the following?

Note: There are multiple correct answers to this question.

Answer
    • high efficiency

    • flabby inventory

    • position of more long term funds

    • None of the mentioned

Question

Financial leverage means ______

Answer
    • Use of more debt capital to increase profit

    • High degree of solvency

    • Low bank finance

    • None of the mentioned

Question

The ideal quick ratio is _____

Answer
    • 2:1

    • 1:1

    • 5:1

    • None of the mentioned

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