Read the following and answer the questions give below:
Answer the following:
1. Current ratio for the year ending 31 March 2020 and 31 March 2021.
i) 2.25 : 1 and 2.50 : 1
ii) 2.25 : 1 and 2.25 : 1
iii) 2.50 : 1 and 2.25 : 1
iv) 2.50 : 1 and 2.50 : 1
2. When current ratio 1 : 1, which of the following will improve the ratio?
i) Sales of goods for ₹ 25,000 (cost ₹ 20,000)
ii) Bill payable discharged ₹ 1000.
iii) Purchased goods for cash ₹ 3500
iv) Cash paid to creditors ₹ 500
3. Find propriety ratio for the year ending 31 March 2020 & 31 March 2021
i) 0.53 : 1 and 0.50 : 1
ii) 0.50 : 1 and 0.53 : 1
iii) 0.55 ; 1 and 0.50 : 1
iv) 0.50 : 1 and 0.50 : 1
4. Which year has higher quick ratio?
i) 2020
ii) 2021
iii) Both are equal (neither)
iv) Neither 2020 nor 2021
