Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer: Option D

Balance sheets are prepared annually. It lists the current and fixed assets on the left side of the sheet and liabilities and owner's equity (capital) on the right.

Answer: Option A

The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources is known as Liquidity ratio.

Answer: Option C

The measure of how efficiently the assets resources are employed by the firm is called Activity ratio. Activity ratios are a category of financial ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.