20th February 2025 - FNF - Part 3

What is Debt ratio formula ?

• Total Liabilities / Total Asset

• Net Profit / Total Asset

• Current Asset / Current Liabilities

• Cash / Current Liabilities

What is the formula for calculating Return on Asset?

• (Net Profit / Total Asset) x 100

• (Total Liabilities / Total Asset) x 100

• (Current Asset / Current Liabilities) x 100

• (Cash / Current Liabilities) x 100

What does the Debt to Equity ratio measure?

• The proportion of a company's debt to its equity

• The company's profitability

• The company's liquidity

• The company's market share

What is Net Working Capital

• Difference between Total Asset and Total Liability

• Difference between Equity and Liability

• Difference between Current Asset and Current Liability

• Difference between Revenue and Expense

What is the purpose of calculating the Debt to Equity ratio?

• To measure the company's debt in relation to its equity

• To determine the company's profitability

• To assess the company's liquidity

• To evaluate the company's market share

How is the Quick Ratio different from the Current Ratio?

• Quick Ratio includes inventory in its calculation

• Quick Ratio excludes inventory from its calculation

• Quick Ratio considers long-term liabilities

• Quick Ratio is calculated using total assets

What does the Return on Asset ratio indicate about a company?

• The company's debt level

• The company's liquidity position

• The company's efficiency in generating profit from its assets

• The company's market value

Which of the following falls under Current Asset

• Revenue

• Inventory

• Medium term note

• Capital

How is the Debt Ratio different from the Debt to Equity ratio?

• Debt Ratio measures total debt to total assets, while Debt to Equity ratio measures debt in relation to equity

• Debt Ratio measures profitability, while Debt to Equity ratio measures liquidity

• Debt Ratio includes equity in its calculation, while Debt to Equity ratio excludes equity

• Debt Ratio is calculated using current assets, while Debt to Equity ratio uses total assets

What does the Current Ratio indicate about a company?

• The company's efficiency in generating profit from its assets

• The company's liquidity position

• The company's market value

• The company's debt level