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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for the Current Ratio?
💡 Hint: Think about how we measure short-term obligations.
Question 2
Easy
What do Liquidity Ratios measure?
💡 Hint: Consider what a business needs to pay in the short term.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the ideal Current Ratio?
- 1:1
- 2:1
- 3:1
💡 Hint: Think about healthy financial ratios.
Question 2
True or False: Ratio Analysis is mainly qualitative.
- True
- False
💡 Hint: Reflect on what type of data ratios use.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has a current assets total of ₹300,000 and current liabilities of ₹150,000. Calculate both the Current Ratio and the Quick Ratio if the inventory is ₹50,000.
💡 Hint: Use the formulas for each ratio.
Question 2
If a firm has a Debt-Equity Ratio of 0.5 and its equity is ₹80,000, what is its total debt?
💡 Hint: Apply the debt-equity formula correctly.
Challenge and get performance evaluation