{"id":55343,"date":"2024-04-16T00:25:45","date_gmt":"2024-04-16T00:25:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55343"},"modified":"2024-04-16T00:25:45","modified_gmt":"2024-04-16T00:25:45","slug":"consider-the-following-1-basic-defensive-and-interval-ratio-2-current-ratio-3-super-quick-ratio-4-quick-ratio-arrange-these-ratios-in-sequence-to-reflect-the-liquidity-in-descending-order","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-1-basic-defensive-and-interval-ratio-2-current-ratio-3-super-quick-ratio-4-quick-ratio-arrange-these-ratios-in-sequence-to-reflect-the-liquidity-in-descending-order\/","title":{"rendered":"Consider the following. 1. Basic defensive and interval ratio 2. Current ratio 3. Super quick ratio 4. Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9759e091927\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    2, 4, 3 and 1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    1, 2, 4 and 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    4, 2, 3 and 1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    3, 4, 1 and 2                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. 1, 2, 4 and 3<\/strong><\/p>\n<p>The liquidity of <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n           <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>  <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> a company is its ability to meet its short-term obligations. The four ratios you have listed are all liquidity ratios, and they measure the company&#8217;s ability to pay its short-term debts.<\/p>\n<p>The basic defensive interval ratio is the most conservative of the four ratios. It measures the number of days that a company can operate without having to generate any new cash flow. It is calculated by dividing the company&#8217;s cash and cash equivalents by its average daily operating expenses.<\/p>\n<p>The current ratio is a more common liquidity ratio. It measures the company&#8217;s ability to pay its short-term debts with its current assets. It is calculated by dividing the company&#8217;s current assets by its current liabilities.<\/p>\n<p>The quick ratio is a stricter measure of liquidity than the current ratio. It measures the company&#8217;s ability to pay its short-term debts with its most liquid assets, which are cash, cash equivalents, and short-term investments. It is calculated by dividing the company&#8217;s quick assets by its current liabilities.<\/p>\n<p>The super quick ratio is the strictest measure of liquidity. It measures the company&#8217;s ability to pay its short-term debts with its most liquid assets, which are cash and cash equivalents. It is calculated by dividing the company&#8217;s cash and cash equivalents by its current liabilities.<\/p>\n<p>Therefore, the liquidity of the four ratios in descending order is:<\/p>\n<ol>\n<li>Basic defensive interval ratio<\/li>\n<li>Current ratio<\/li>\n<li>Quick ratio<\/li>\n<li>Super quick ratio<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/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":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consider the following. 1. Basic defensive and interval ratio 2. Current ratio 3. Super quick ratio 4. 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