Question
Which of the following ratios is a measure of a firm's
short-term liquidity position?Solution
The Quick Ratio, also known as the Acid-Test Ratio, measures a company’s ability to pay its short-term liabilities using its most liquid assets (excluding inventory). A ratio greater than 1 generally indicates the firm can comfortably meet its short-term obligations.
Under the simplified procedure for working capital finance to Micro and Small Enterprises (MSEs) with working capital limits of up to ₹5 crore, the wo...
Which one of the following is a correct equation?
Which among the following correctly describes Margin of Safety?
Customer acquisition costs (agent commissions) for one-year policies are paid upfront. Can they be capitalized as intangible assets?
A company purchased a machinery for Rs.4,50,000. The machine is expected to have a useful life is 7 years after which it can salvage a value of Rs.30,0...
According to section 10 of Indian Contract Act, 1872, which of the following is not regarded as the essential elements of a valid contract?
Which of the following is shown under investing activities in the cash flow statement ?
A company reports the following data for the year:
• Net Profit before tax and extraordinary items: ₹12,00,000
• Depreciation: ₹2,...
As per government procurement policy, Central Public Sector Enterprises (CPSEs) are required to procure what minimum percentage of their purchases from ...
Contribution is calculated as:
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