Question

Fill in the blanks by selecting appropriate word/s the List II.

List I:

1. The _________ ratios are primarily measures of return: 2. The _________ of business firm is measured by its ability to satisfy its short-term obligations as they become due: 3. _________ ratios are a measure of the speed with which various accounts are converted into revenue from operations or cash: 4. The two basic measures of liquidity are _______,_______. 5. The _________ is a measure of liquidity which excludes _______, generally the least liquid asset.

List II:

a. profitability

b. liquidity

c. activity

d. current ratio, liquid ratio

e. liquid ratio, inventory

A 1-a, 2-b, 3-c, 4-d, 5-e Correct Answer Incorrect Answer
B 1-a, 2-b, 3-c, 4-e, 5-d Correct Answer Incorrect Answer
C 1-a, 2-b, 3-c, 4-d, 5-e Correct Answer Incorrect Answer
D 1-a, 2-b, 3-d, 4-c, 5-e Correct Answer Incorrect Answer
E 1-b, 2-a, 3-c, 4-d, 5-e Correct Answer Incorrect Answer

Solution

The correct answer is A

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