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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