Match List-I with List-II:List-I (Ratio)List-II (Formula)(A) Current ratio(I) Market Price of a share / EPS(B) Operating Margin Ratio(II) Current Assets / Current Liabilities(C) Return on Capital employed(III) 100 - Operating Ratio(D) Price earning ratio(IV) Choose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's verify each accounting ratio and its respective mathematical formula:(A) Current ratio: Formula is (II).(B) Operating Margin Ratio: Expressed as (III).(C) Return on Capital employed: Defined as (IV).(D) Price earning (P/E) ratio: Computed as (I).Thus, the proper cross-matching is (A) - (II), (B) - (III), (C) - (IV), (D) - (I).