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Standard XII
Accountancy
Question

The following group of ratios primarily measures risk ________________.
  1. Liquidity, activity, and profitability
  2. Liquidity, activity, and common stock
  3. Liquidity, activity, and debt
  4. Activity, debt, and profitability

A
Liquidity, activity, and profitability
B
Liquidity, activity, and common stock
C
Liquidity, activity, and debt
D
Activity, debt, and profitability
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Solution
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Some of the financial ratios that are most commonly used by the investors and analysis to access a company's financial risk level and overall financial health are debt-to-capital ratio, interest coverage ratio, activity ratio, and profitability ratios.

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