Select the most Appropriate Alternative from those given below and rewrite the sentences :

1) Gross Profit Ratio indicates the relationship of gross profit to the___________.
a) Net-Cash
b) Net-Sales
c) Net Purchases
d) Gross Sales
Ans:-b) Net-Sales

2) Current Ratio = (……………………………….)/(Current Liabilities)
a) Current Liabilities
b) Quick Assets
c) Quick Liabilities
d) Current Assets
e) None of these
Ans:-d) Current Assets

3) Liquid Assets =____________
a) Current Assets + Stock
b) Current Assets – Stock
c) Current Assets – stock +       prepaid Expenses
d) None of these
Ans:- b) Current Assets-Stock

4) Cost of goods sold___________
a) Sales – Gross profit
b) Sales – Net Profit
c) Sales Proceeds
d) None of these
Ans:-a) Sales-Gross profit

5) Net-Profit Ratio is equal to______________
a) Operating ratio
b) Operating net-profit ratio
c) Gross Profit Ratio
d) Current Ratio
Ans:-a) Operating ratio

6) The Common Size Statement requires______________
a) Common base
b) Journal Entries
c) Cash Flow
d) Current Ratio
Ans:- a) Common base

7) Bill Payable is_________________
a) Long term loan
b) Current Liabilities
c) Liquid Assets
d) Net Loss
Ans:-b) Current Liabilities

8) Generally Current Ratio should be___________
a) 2:1
b) 1:1
c) 1:2
d) 3:1
Ans:-a) 2:1

9) From financial statement analysis the creditors are specially interested to know_________________
a) Liquidity
b) Profits
c) Sale
d) Share Capital
Ans:-a) Liquidity