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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the definition of a ratio?
💡 Hint: Think of it as a comparison.
Question 2
Easy
What do liquidity ratios measure?
💡 Hint: Focus on short-term debts.
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 does a ratio represent in accounting?
- Profit or loss
- Comparison of two numbers
- Evaluation of assets
💡 Hint: Think of how we use fractions.
Question 2
True or False: Profitability ratios assess a company's ability to pay its short-term debts.
- True
- False
💡 Hint: Remember the category these ratios belong to.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has total assets of ₹1,000,000 and total liabilities of ₹600,000. Calculate the debt-equity ratio and interpret what it indicates.
💡 Hint: Remember, equity is what's left after liabilities.
Question 2
If a company's current assets are ₹250,000, current liabilities are ₹100,000, and inventory is ₹70,000, calculate the quick ratio.
💡 Hint: Don’t forget to subtract inventory!
Challenge and get performance evaluation