Practice - Accounting Ratios
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What does the current ratio indicate?
💡 Hint: Think about what current assets vs. current liabilities means.
Provide an example of a profitability ratio.
💡 Hint: Recall ratios that deal with profit and revenue.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the ideal Current Ratio?
💡 Hint: Think about balance in financial health.
True or False: Profitability ratios assess a company's ability to cover its short-term liabilities.
💡 Hint: Recall the purpose of profitability versus liquidity ratios.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given a company with current assets of ₹500,000 and current liabilities of ₹200,000, calculate the current ratio and interpret the result in terms of financial stability.
💡 Hint: Use the formula and think about what the number indicates.
A business shows a decline in its net profit ratio from 30% to 20% over two years. Discuss potential implications regarding its operational efficiency or market position.
💡 Hint: Consider external market factors and internal operational changes.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.