Match the following.
| List-I | List-II |
| a. Leverage ratio | 1. Short-term solvency |
| b. Liquidity ratio | 2. Earning capacity |
| c. Turnover ratio | 3. Relationship between debt and equity |
| d. Profitability ratio | 4. Efficiency of asset management |
A. a-2, b-1, c-4, d-3
B. a-3, b-2, c-1, d-4
C. a-4, b-3, c-1, d-2
D. a-3, b-1, c-4, d-2
Answer: Option D
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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