A: The Quick Ratio is more stringent than the Current Ratio. R: The Quick Ratio excludes inventory and prepaid expenses from current assets. Choose the correct option.
A.Both A and R are true but R is NOT the correct explanation of A
B.Both A and R are true and R is the correct explanation of A
Explanation:
The Quick (Acid-Test) Ratio is a more stringent measure of short-term liquidity than the Current Ratio. It excludes inventory and prepaid expenses because they are not immediately convertible to cash. R correctly explains why it is more stringent.
Explanation:
Virement is the process of transferring funds from one budget head to another to meet unforeseen expenses without increasing the total budget.
Explanation:
Direct taxes, like Income Tax and Wealth Tax, are levied directly on the income and wealth of individuals or entities. The burden of direct taxes cannot be shifted to someone else. S1 is correct, S2 is incorrect.
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