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AR
Question Practice

A higher current ratio indicates:

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Accounting Ratios
Question Bank

A higher current ratio indicates:

Single Answer MCQ
Q-00082814

A higher current ratio indicates:

1

More liquidity to cover short-term debts

2

Greater profitability

3

A worse financial position

4

Increased long-term debt

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Q1.

What is an accounting ratio?

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Q2.

Which of the following can an accounting ratio NOT represent?

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Q3.

The gross profit ratio shows the relationship between which two figures?

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Q4.

Which of the following ratios is used to measure liquidity?

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