POP QUIZ FINANCIAL RATIO

1. 1. Ability of organization to cover the short term obligation related to

• PROFITABILITY RATIO

• LIQUIDITY RATIO

• EFFIENCENCY RATIO

• LEVERAGE RATIO

High leverage ratio indicate the effective debt management of company.

• TRUE

• FALSE

Below show the main components of financial statement EXCEPT

• STATEMENT OF EQUITY

• STATEMENT OF FINANCIAL POSITION

• CASH FLOW STATEMENT

• COMPREHEBSIVE INCOME STATEMENT

INTERNAL COMPARISON OF FINANCIAL RATIO IS KNOWN AS

• CROSS-SECTIONAL ANALYSIS

• TIME SERIES ANALYSIS

• INTER - FIRM COMPARISON

Efficiency ratio used to measure how effectively the firm is managing its assets in generating sales. This ratio also called as

• Liability management ratio

• Sales management ratio

• Asset management ratio

• Debt management ratio

The low ratio of inventory turnover would lead to overstocking of stock.

• TRUE

• FALSE

Below shown all the element under Statement of financial position EXCEPT

• ASSET

• LIABILITY

• REVENUE

• EQUITY

Customer and investor is categorized as the internal users of financial statement

• TRUE

• FALSE

Return on asset is known as return on investment

• TRUE

• FALSE

The level of obligation or commitment of the firm is measured by

• DEBT RATIO

• RETURN ON ASSET

• RETURN ON EQUITY

• LIQUIDITY RATIO