Practice - Short Answer Questions
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Practice Questions
Test your understanding with targeted questions
What is the current ratio formula?
💡 Hint: Think about measuring short-term financial health.
State one example of a profitability ratio.
💡 Hint: Related to a company's sales and profits.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a high liquidity ratio indicate?
💡 Hint: Consider which option relates to financial obligations.
Is the Quick Ratio the same as Current Ratio?
💡 Hint: Think about the differences in their calculations.
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Challenge Problems
Push your limits with advanced challenges
A company has current assets of ₹2,00,000, inventory of ₹50,000, and current liabilities of ₹1,00,000. Calculate both the Current Ratio and Quick Ratio. Discuss the implications of your results.
💡 Hint: Use the formulas carefully to derive the two ratios.
Assess a hypothetical company with a Debt-Equity Ratio of 2:1. If equity is ₹1,00,000, calculate the total debt. Interpret the financial risks involved with high leverage.
💡 Hint: Remember the relationship of debt to equity in the ratio.
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