[amp_mcq option1=”a-2, b-3, c-4, d-1″ option2=”a-3, b-4, c-1, d-2″ option3=”a-4, b-3, c-2, d-1″ option4=”a-2, b-1, c-4, d-3″ correct=”option4″]<\/p>\n
The correct answer is D.<\/p>\n
a. Operating profit = Gross profit – Operating expenses
\nb. Liquid liabilities = Current assets – Current liabilities
\nc. Capital employed = Equity share capital + Preference share capital + Long-term borrowings
\nd. Fixed assets ratio = Fixed assets \u00c3\u00b7 Capital employed<\/p>\n
Here is a brief explanation of each option:<\/p>\n
a. Operating profit is the profit that a company makes from its core business activities. It is calculated by taking the gross profit and subtracting the operating expenses.
\nb. Liquid liabilities are the liabilities that a company expects to pay within the next year. They include current liabilities such as accounts payable, short-term loans, and accrued expenses.
\nc. Capital employed is the total amount of money that a company has invested in its business. It is calculated by adding together the equity share capital, preference share capital, and long-term borrowings.
\nd. Fixed assets ratio is a measure of a company’s financial leverage. It is calculated by dividing the fixed assets by the capital employed. A higher fixed assets ratio indicates that a company is more leveraged, which means that it has more debt financing.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”a-2, b-3, c-4, d-1″ option2=”a-3, b-4, c-1, d-2″ option3=”a-4, b-3, c-2, d-1″ option4=”a-2, b-1, c-4, d-3″ correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-53893","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n