Practice - Meaning of Ratio
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Practice Questions
Test your understanding with targeted questions
What is the definition of a ratio?
💡 Hint: Think of it as a comparison.
What do liquidity ratios measure?
💡 Hint: Focus on short-term debts.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does a ratio represent in accounting?
💡 Hint: Think of how we use fractions.
True or False: Profitability ratios assess a company's ability to pay its short-term debts.
💡 Hint: Remember the category these ratios belong to.
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Challenge Problems
Push your limits with advanced challenges
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.
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!
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