Question

Which one of the following is correct?

1. Quick Ratio can be more than Current Ratio.
2. High Inventory Turnover ratio is good for the organisation, except when goods are bought in small lots or sold quickly at low margins to realise cash.
3. Sum of Operating Ratio and Operating Profit ratio is always 100%.

Options

• All are correct.

• Only (i) and (iii) are correct.

• Only (ii) and (iii) are correct.

• Only (i) and (ii) are correct.

Answer 1

Only (ii) and (iii) are correct.