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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: Recall the components of current assets and liabilities.
Question 2
Easy
Define EPS.
💡 Hint: Think about what EPS indicates to investors.
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 the Current Ratio measure?
- Short-term liquidity
- Long-term debts
- Investments
💡 Hint: Think about how quickly a business can access cash.
Question 2
True or False: The Quick Ratio includes inventory in its calculation.
💡 Hint: Consider why a company might not want to include inventory.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has Current Assets at ₹250,000, Inventory at ₹50,000, and Current Liabilities at ₹100,000. Calculate both the Current Ratio and Quick Ratio.
💡 Hint: Remember to separate Quick Assets from Current Assets for calculating the Quick Ratio.
Question 2
Calculate the Return on Capital Employed given a Net Profit before Interest and Tax of ₹120,000 and Capital Employed of ₹600,000.
💡 Hint: Use the ROCE formula carefully!
Challenge and get performance evaluation