Question

Which of the following ratio is not derived from profit and loss statement?

i. Debt Equity Ratio

ii. Current Ratio

iii. Stock turnover ratio

iv Expense ratio

A Only i Correct Answer Incorrect Answer
B Only i and ii Correct Answer Incorrect Answer
C Only i and iv Correct Answer Incorrect Answer
D Only iii Correct Answer Incorrect Answer
E Only iv Correct Answer Incorrect Answer

Solution

Debt Equity ratio and Current Ratio are calculated from Balance Sheet, not from the Profit & Loss statement.

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