GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Ratios may be classified as -
A
Profitability ratios
B
Financial ratios
C
Leverage ratios
D
All of the above
Explanation: 

Detailed explanation-1: -Under the traditional classification, the ratios are classified as: (i) Balance sheet ratios, (ii) Income statement ratios and (iii) Inter-statement ratios.

Detailed explanation-2: -There are six basic ratios that are often used to pick stocks for investment portfolios. These include the working capital ratio, the quick ratio, earnings per share (EPS), price-earnings (P/E), debt-to-equity, and return on equity (ROE).

Detailed explanation-3: -Profitability ratios. Liquidity ratios. Solvency ratios. Valuation ratios or multiples.

Detailed explanation-4: -Liquidity ratios. Leverage ratios. Efficiency ratios. Profitability ratios. Market value ratios.

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