The Debt to Equity Ratio is not a liquidity ratio; it measures the company's financial leverage instead.

The Capitalization Method is not a recognized method of calculating depreciation.

The Cost Recovery Method is not a standard method of depreciation; it refers to recovering costs rather than a specific depreciation calculation.

Calculating tax liabilities is not a reason for preparing a trial balance; it is primarily used to detect errors and assist in preparing financial statements.

A Cash Flow Statement is not typically included in the final accounts of a sole trader.

The Profit and Loss Appropriation Account is prepared after the trial balance and is not included in it.

The Cash Flow Statement is not included in the trial balance as it is a financial statement, not a ledger account.

Selling and administrative expenses are not included in the cost sheet, which focuses on production costs.

Journal entries are not included in final accounts; they are used to record transactions before preparing final accounts.

A Cash Flow Statement is not typically included in the final accounts of a sole trader.

Net Realizable Value is not a method of inventory valuation; it is a measure used to assess the value of inventory.

The Straight-Line Method allocates an equal amount of depreciation expense each year over the useful life of the asset.

The Declining Balance Method typically results in the lowest book value of an asset in the early years due to higher depreciation expenses.

The Declining Balance Method typically results in a lower book value at the end of the asset's useful life compared to the Straight-Line Method.

The Declining Balance Method would likely result in the lowest net income in the early years due to higher depreciation expenses.

The Current Ratio is used to assess a company's ability to meet its short-term obligations.

Return on Equity (ROE) is a key profitability ratio that measures the amount of net income returned as a percentage of shareholders' equity.

The Debt to Equity Ratio is used to evaluate a company's solvency by comparing its total liabilities to its shareholder equity.

Accounts Payable is classified as a current liability as it is due within one year.

The Matching Principle requires that expenses be matched with revenues in the period in which they are incurred.

The debt to equity ratio is used to assess a company's ability to meet its long-term obligations.

The Inventory Turnover Ratio assesses a company's efficiency in managing its inventory by measuring how many times inventory is sold and replaced over a period.

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

The Debt to Equity Ratio measures a company's financial leverage and its ability to meet long-term obligations by comparing total liabilities to shareholders' equity.

The Current Ratio measures a company's ability to pay its short-term liabilities with its short-term assets.

Return on Assets (ROA) measures a company's profitability relative to its total assets, showing how efficiently assets are used to generate profit.

The debt to equity ratio assesses a company's ability to cover its long-term obligations.