Match List-I and List-II: List-I (Ratios)List-II (Uses) P. Cash profit ratio 1. Measures liquidity Q.…
The matching is P-2, Q-3, R-1, S-4. Cash profit ratio indicates profitability, while debt-equity ratio measures financial risk from the financing mix. Working capital ratio…
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Match List-I and List-II:
| List-I (Ratios) | List-II (Uses) |
|---|---|
| P. Cash profit ratio | 1. Measures liquidity |
| Q. Debt-equity ratio | 2. Indicates profitability |
| R. Working capital ratio | 3. Measures financial risk |
| S. Cash turnover ratio | 4. Indicates efficiency in managing the cash |
Answer and explanation
Correct answer B
The matching is P-2, Q-3, R-1, S-4. Cash profit ratio indicates profitability, while debt-equity ratio measures financial risk from the financing mix. Working capital ratio measures liquidity, and cash turnover ratio indicates efficiency in using cash.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)