(i) A ratio is an arithmetical relationship of one number to another number.
(ii) Liquid ratio is also known as acid test ratio
(iii) Rule of thumb for current ratio is 2:1.
(iv) Debit equity ratio is the relationship between outsider’s fund and shareholder’s fund.
All (i), (ii), (iii) and (iv) are correct
Only (i), (ii) and (iii) are correct
Only (ii), (iii) and (iv) are correct
Only (ii) and (iii) are correct