Match List-I with List-II:List-IList-II(A) Measure of liquidity(I) Return on capital employed(B) Measure of earning capacity(II) Inventory turnover ratio(C) Measure of activity of firm's inventory(III) Profitability ratio(D) Measure of Productive efficiency of funds(IV) Current ratioChoose the correct answer from the options given below:
- A(A) - (IV), (B) - (II), (C) - (III), (D) - (I)
- B(A) - (IV), (B) - (III), (C) - (II), (D) - (I)
- C(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
- D(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Solution & Step-by-step Explanation
The correct pairs match categories to specific financial formulas/objectives:Measure of liquidity (A) Current ratio (IV)Measure of earning capacity (B) Profitability ratio (III)Measure of activity of firm's inventory (C) Inventory turnover ratio (II)Measure of Productive efficiency of funds (D) Return on capital employed (I)Hence, option B is the right choice.