Question

Which one of the following statement is/are correct?

1.  Quick ratio is considered better than current ratio as a measure of liquidity position of business.
2. Debt-equity ratio measures the short-term solvency of the business.
3. Interest coverage ratio reveals the number of times interest on long-term debts is covered by the profits available for interest.

Options

• All are correct.

• (i) and (iii) are correct.

• (ii) and (iii) are correct.

• (i) and (ii) are correct.

Answer 1

(i) and (iii) are correct.