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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 Quick Ratio?
💡 Hint: Remember, Quick Assets exclude Inventory.
Question 2
Easy
Name any two types of liquidity ratios.
💡 Hint: Think of ratios focusing on short-term financial health.
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?
- Long-term financial strength
- Short-term financial obligations
- Overall profitability
💡 Hint: Consider what short-term obligations entail.
Question 2
True or False: The Net Profit Ratio indicates how much of sales is profit.
- True
- False
💡 Hint: Recall how net profit is calculated.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has the following financial figures: Current Assets: ₹250,000; Inventory: ₹50,000; Current Liabilities: ₹100,000. Calculate the Current Ratio and Quick Ratio.
💡 Hint: Remember to calculate Quick Ratio by excluding inventory.
Question 2
If a company has a net profit of ₹90,000 and total equity of ₹500,000, what is the Return on Equity (RoE)?
💡 Hint: Think about the percentage of net profit relative to shareholders' equity.
Challenge and get performance evaluation