HomeTestsSearchRankProfile
easyMCQCUET Accountancy 2022 15 July Shift 22026Accountancy
1 attempts0% success rate1 mark

The ratios calculated to measure the short term commitments of business is:

  1. A
    Liquidity Ratio
  2. B
    Activity Ratio
  3. C
    Profitability Ratio
  4. D
    Solvency Ratio

Solution & Step-by-step Explanation

Liquidity Ratios (such as Current Ratio and Liquid/Quick Ratio) measure the ability of a firm to meet its short-term obligations and commitments as they fall due.

Practice this question

Try it yourself before checking the explanation above.

The ratios calculated to measure the short term commitments of business is:
A
Liquidity Ratio
B
Activity Ratio
C
Profitability Ratio
D
Solvency Ratio

Share This Question

Financial StatementsRatiosLiquidity

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion