Practice - Very Short Answer Questions
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Practice Questions
Test your understanding with targeted questions
What is the formula for Current Ratio?
💡 Hint: Think about what is needed to cover short-term debts.
Name one profitability ratio.
💡 Hint: What measures profitability in relation to sales?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Current Ratio measure?
💡 Hint: Consider the scope of 'Current' in finance.
True or False: Ratio Analysis can fully assess a company’s performance.
💡 Hint: Think about what kind of data ratio analysis overlooks.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given the following financial details, calculate the Current Ratio and assess the liquidity position: Current Assets: ₹500,000, Current Liabilities: ₹200,000.
💡 Hint: Remember, a ratio over 2 indicates healthy liquidity.
A company reports Gross Profit of ₹120,000 and Net Sales of ₹600,000. Calculate the Gross Profit Ratio and explain its significance.
💡 Hint: Think about how much of sales is retained after accounting for the cost of goods sold.
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