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Accountancy · 2023 · 1 mark
CBSE 2023 · Region 2 · Set 2 · Q27
Which one of the following statement is/are correct ? (i) Quick Ratio is considered better than Current Ratio as a measure of liquidity position of business. (ii) Debt-equity ratio measures the short term solvency of the business. (iii) Interest Coverage Ratio reveals the number of times interest on long term debts is covered by the profits available for interest.ORratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.
OR
ratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.Official answer
From CBSE’s own marking scheme for this paper.
(a) → (B)
(b) → (B)
Marking-scheme solution
(i)
and (iii) are correct
Or
Q. (B) _________ratios are calculated for……………
Ans. (b) Turnover Ratio
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.