The Five Ratios Quiz

Quiz
•
Business
•
10th Grade
•
Easy

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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