Question

To test the liquidity of a concern, which of the following ratios are useful?

1. Quick ratio
2. Net profit ratio
3. Debt-equity ratio
4. Current ratio

Select the correct answer using the codes given below:

Options

• (i) and (ii)

• (i) and (iv)

• (ii) and (iii)

• (ii) and (iv)

Answer 1

(i) and (iv)