Consider the following.
1. Basic defensive and interval ratio
2. Current ratio
3. Super quick ratio
4. Quick ratio
Arrange these ratios in sequence to reflect the liquidity in descending order.
A. 2, 4, 3 and 1
B. 1, 2, 4 and 3
C. 4, 2, 3 and 1
D. 3, 4, 1 and 2
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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