Which fundamental accounting concept stipulates that company needs to apply the same policies every year? A Consistency B Comparability Accruals Prudence Question 24 Which of the following ratios measures the ability of a firm to meet its short-term obligations? Gearing ratio B Liquidity ratio Return on equity D) Return on assets 2 Points 2 Points Points A company's current ratio for year 1 and year 2 are 1.9:1 and 2.3:1 and the quick ratio for the same periods are 1.7:1 and 1.3:1. Assuming there was no change in current liabilities, it can be inferred that: Receivables have increased B Cash and cash equivalent has increased Current assets excluding inventory has gone up (D) Inventory has increased