The term 'Liquidity Ratio' includes: MCQ with Answer and Explanation

Question
The term 'Liquidity Ratio' includes:
A. Debt-Equity Ratio and Proprietary Ratio
B. Stock Turnover Ratio and Debtors Turnover Ratio
C. Gross Profit Ratio and Net Profit Ratio
D. Current Ratio and Quick Ratio
Answer: Option D
Solution (By JKSSB Mock Tests)
Liquidity ratios measure the short-term solvency of a firm and include the Current Ratio and the Quick (or Acid-Test) Ratio.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The maximum number of members in a public company is:
A. 200
B. 100
C. No limit
D. 50
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Correct Answer: Option C

Explanation:
Public company has no maximum limit on number of members.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is:
A. Partners' capital balances
B. Secured creditors up to the value of security
C. Partners' loans
D. Unsecured trade creditors
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Correct Answer: Option B

Explanation:
Secured creditors have the first right over the assets they hold as security. Any remaining dues become unsecured.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Duty Drawback' scheme under Customs provides:
A. No refund
B. Exemption from income tax
C. Refund of duties on imported inputs used in exported goods
D. GST refund
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Correct Answer: Option C

Explanation:
Duty drawback refunds customs/excise duties paid on inputs used in exported products.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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