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Match the items of List – I with the items of List – II: List – I List – II (a) Leverage Ratio (i)…

Leverage ratios examine the relationship between debt and equity, while liquidity ratios assess short-term solvency. Turnover ratios indicate the efficiency of asset…

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Match the items of List – I with the items of List – II:
List – IList – II
(a) Leverage Ratio(i) Short-term solvency
(b) Liquidity Ratio(ii) Earning capacity
(c) Turnover Ratio(iii) Relationship between debt and equity
(d) Profitability Ratio(iv) Efficiency of Asset Management
Select one answer
Answer and explanation

Correct answer D

Leverage ratios examine the relationship between debt and equity, while liquidity ratios assess short-term solvency. Turnover ratios indicate the efficiency of asset management, and profitability ratios measure earning capacity. The matches are a-iii, b-i, c-iv and d-ii.

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  • Andhra Pradesh SET (APSET)

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