Match the following: List-I List - II (P) The standard ratio 2:1 is considered satisfactory (1) Return on assets (Q) It measures profitability of the firm in terms of assets employed (2) Current ratio (R) Ratio which mea

CS Executive · Cost and Management Accounting · PYQS · December 2016
Match the following: List-I List - II (P) The standard ratio 2:1 is considered satisfactory (1) Return on assets (Q) It measures profitability of the firm in terms of assets employed (2) Current ratio (R) Ratio which measures long-term solvency of a firm (3) Gearing ratio (S) Ratio which indicates how much of the business is funded by borrowings (4) Debt-equity ratio Select the correct answer from the options given below —
(A) (2) (3) (1) (4)
(B) (3) (2) (1) (4)
(C) (2) (1) (3) (4)
(D) (2) (1) (4) (3)

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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