5 Questions
Which of the following is NOT a type of ratio commonly used in financial analysis?
Liquidity ratios
Which of the following is NOT a limitation of accounting ratios?
They provide a complete picture of the firm's financial position
Which of the following ratios is used to assess a firm's liquidity?
Accounts receivable turnover ratio
Which of the following is a ratio used to assess a firm's solvency?
Current ratio
Which of the following ratios is used to assess a firm's profitability?
Return on equity
Test your knowledge of accounting ratios with this quiz! Learn about the meaning, objectives, and limitations of ratios, as well as how to calculate and interpret various ratios for assessing solvency, liquidity, efficiency, and profitability of a firm. Perfect for students and professionals in the field of accounting.
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