Financial and Management Accounting

1: Consider the following ratios: 1. Acid test ratio 2. Capital turnover ratio 3. Bad debts to sales ratio 4. Inventory turnover ratio Which of these ratios are more appropriate for testing the liquidity of a concern?

 

A.

1 and 3

B.

1 and 4

C.

2 and 4

D.

2 and 3

 

Answer : B

Explanation :

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Option: A

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