Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Role of thumb for current ratio is 2: 1 (iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund A. Only (i), (ii) and (iii) are correct. B. Only (ii), (iii) and (iv) are correct. C. Only (ii) and (iii) are correct. D. All of the above.

Which one of the following is correct (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Role of thumb for current ratio is 2: 1 (iv) Debt equity ratio is the relationship between outsiders fund and shareholders fund A. Only (i), (ii) and (iii) are correct. B. Only (ii), (iii) and (iv) are correct. C. Only (ii) and (iii) are correct. D. All of the above.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 58BE: Liquidity Ratios JRLs financial statements contain the following information: Required: 1. What is...

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