CBSE Class 11 Accounting Ratios Quiz
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Questions and Answers

Which one of the following is a liquidity ratio?

  • Debt to equity ratio
  • Earnings per share ratio
  • Current ratio (correct)
  • Return on investment ratio
  • Which financial ratio indicates the efficiency of a company's inventory management?

  • Price-earnings ratio
  • Profit margin ratio
  • Inventory turnover ratio (correct)
  • Debt ratio
  • Which ratio is used to assess a company's ability to meet its long-term debt obligations?

  • Return on assets ratio
  • Gross profit margin ratio
  • Times interest earned ratio (correct)
  • Debt to equity ratio
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