For calculating the Current Ratio, which of the following is excluded from Current Assets? MCQ with Answer and Explanation
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Question #1
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A characteristic feature of a Direct Tax is that:
Correct Answer: Option C
Explanation:
In direct taxes like Income Tax, the person upon whom the tax is legally imposed is the one who bears its economic burden.
In direct taxes like Income Tax, the person upon whom the tax is legally imposed is the one who bears its economic burden.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which ratio measures the short-term solvency of a firm?
Correct Answer: Option B
Explanation:
The Current Ratio compares current assets to current liabilities, indicating the firm's ability to meet its short-term obligations.
The Current Ratio compares current assets to current liabilities, indicating the firm's ability to meet its short-term obligations.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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A trial balance is prepared to check:
Correct Answer: Option B
Explanation:
The primary purpose of a trial balance is to verify the arithmetical accuracy of the ledger by ensuring total debits equal total credits.
The primary purpose of a trial balance is to verify the arithmetical accuracy of the ledger by ensuring total debits equal total credits.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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