Match List – I with List – II. LIST I LIST II A. Operating Profit Rat… | Accountancy Part B CUET question

Match List – I with List – II.

LIST I	LIST II
A. Operating Profit Ratio	I. Solvency Ratios
B. Working Capital Turnover Ratio	II. Liquidity Ratios
C. Debt-Equity Ratio	III. Activity Ratios
D. Quick Ratio	IV. Profitability Ratios

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-IV, B-III, C-I, D-II

Ratios are grouped by what they measure: short-term liquidity, long-term solvency, activity levels or earning capacity:

(A) Operating Profit Ratio — this matches (IV) Profitability Ratios. It measures operating profit on revenue from operations.

(B) Working Capital Turnover Ratio — this matches (III) Activity Ratios. It shows how fast working capital is turned into sales.

(C) Debt-Equity Ratio — this matches (I) Solvency Ratios. It tests the long-term ability to service debt.

(D) Quick Ratio — this matches (II) Liquidity Ratios. The quick (acid-test) ratio tests short-term liquidity.

NCERT (2026-27 edition):
Types of Ratios – “… There are many types of ratios, viz., liquidity, solvency, activity and profitability ratios. The liquidity ratios include current ratio and acid test ratio. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run instead of in the short run. They include debt equity ratio, total assets to debt ratio, proprietary ratio and interest coverage ratio.”

NCERT (2026-27 edition):
Types of Ratios – “… The turnover ratios basically exhibit the activity levels characterised by the capacity of the business to make more sales or turnover and include Inventory Turnover, Trade Receivables Turnover, Trade Payables Turnover, Working Capital Turnover, Fixed Assets Turnover and Current assets Turnover.”

NCERT (2026-27 edition):
Profitability Ratios

Extract from the NCERT textbook

NCERT (2026-27 edition):
Quick or Liquid Ratio – “… The quick assets are defined as those assets which are quickly convertible into cash. While calculating quick assets we exclude the inventories at the end and other current assets such as prepaid expenses, advance tax, etc., from the current assets. Because of exclusion of non-liquid current assets it is considered better than current ratio as a measure of liquidity position of the business. It is calculated to serve as a supplementary check on liquidity position of the business and is therefore, also known as ‘Acid-Test Ratio’.”