Match List-I with List-IIList-IList-II(A) Liquidity Ratio(II) Quick Ratio(B) Solvency Ratio(III) Proprietary Ratio(C) Activity Ratio(I) Trade payable Turnover Ratio(D) Profitability Ratio(IV) Price earning ratioChoose the correct answer from the options given below:
- A(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
- B(A) - (II), (B) - (III), (C) - (I), (D) - (IV)
- C(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Matching the ratios with their proper classification categories:(A) Liquidity Ratio: Quick Ratio (II) - evaluates near-term liquidity.(B) Solvency Ratio: Proprietary Ratio (III) - measures long-term structural financial stability.(C) Activity Ratio: Trade payable Turnover Ratio (I) - indicates efficiency of credit cycles.(D) Profitability Ratio: Price Earnings (P/E) Ratio (IV) - tracks equity returns performance relative to share market prices.