Match the items of List-I with those of List-II and indicate the correct answer
| List-I | List-II |
| a. Acid test ratio | 1. Profitability analysis |
| b. Debt service coverage ratio | 2. Activity analysis |
| c. Debt equity ratio | 3. Liquidity analysis |
| d. Stock turnover ratio | 4. Long-term solvency analysis |
A. a-2, b-1, c-3, d-4
B. a-2, c-3, c-4, d-1
C. a-3, b-4, 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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