The Five Ratios Quiz

The Five Ratios Quiz

10th Grade

18 Qs

quiz-placeholder

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The Five Ratios Quiz

The Five Ratios Quiz

Assessment

Quiz

Business

10th Grade

Easy

Created by

Katherine S

Used 2+ times

FREE Resource

18 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How are accounting ratios used by accountants?

To prepare financial statements

To analyze financial health

To conduct audits

To manage payroll

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The type of ratio for Current Ratio is:

Liquidity Ratio

Profitability Ratio

Efficiency Ratio

Leverage Ratio

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Current Ratio measure?

The ability of a company to pay its short-term obligations with its short-term assets.

The profitability of a company over a specific period.

The long-term growth potential of a company.

The market share of a company in its industry.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for Current Ratio?

Current Assets / Current Liabilities

Current Liabilities / Current Assets

Total Assets / Total Liabilities

Total Liabilities / Total Assets

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the interpretation range for Current Ratio?

0.5 to 1.5

1.5 to 3

3 to 5

Above 5

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the type of ratio for Solvency Ratio?

Liquidity Ratio

Profitability Ratio

Efficiency Ratio

Debt to Asset Ratio

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Solvency Ratio measures:

a company's ability to meet its long-term debts

the profitability of a company

the liquidity of a company

the market share of a company

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