-
question_answer1)
Liquid assets do not include:
A)
Bills Receivable done
clear
B)
Debtors done
clear
C)
Inventory done
clear
D)
Bank Balance done
clear
View Solution play_arrow
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question_answer2)
Ideal Quick Ratio is:
A)
1 : 1 done
clear
B)
1 : 2 done
clear
C)
1 : 3 done
clear
D)
2 : 1 done
clear
View Solution play_arrow
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question_answer3)
Liquid assets include:
A)
Debtors done
clear
B)
Bills Receivable done
clear
C)
Bank Balance done
clear
D)
All of these done
clear
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question_answer4)
Which of the following transactions will improve the current ratio?
A)
Cash Collected from Trade Receivables done
clear
B)
Purchase of Goods for Cash done
clear
C)
Payment to Trade Payables done
clear
D)
Credit Purchase of Goods done
clear
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question_answer5)
Assuming that the current ratio is 2 :1, purchase of goods on credit would:
A)
increase current ratio done
clear
B)
decrease current ratio done
clear
C)
have no effect on current ratio done
clear
D)
decrease gross profit ratio done
clear
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question_answer6)
Current Assets Rs. 85,000; Inventory Rs. 22,000; Prepaid Expenses Rs. 3,000. Then liquid assets will be:
A)
Rs. 63,000 done
clear
B)
Rs. 60,000 done
clear
C)
Rs. 82,000 done
clear
D)
Rs. 1,10,000 done
clear
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question_answer7)
Two basic measures of liquidity are:
A)
inventory turnover and current ratio done
clear
B)
current ratio and quick ratio done
clear
C)
gross profit ratio and operating ratio done
clear
D)
current ratio and average collection period done
clear
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question_answer8)
Current assets do not include:
A)
Prepaid Expenses done
clear
B)
Inventory done
clear
C)
Goodwill done
clear
D)
Bills Receivable done
clear
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question_answer9)
Liquid ratio is equal to liquid assets divided by:
A)
Non-current Liabilities done
clear
B)
Current Liabilities done
clear
C)
Total Liabilities done
clear
D)
Contingent Liabilities done
clear
View Solution play_arrow
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question_answer10)
Which of the following transactions will improve the quick ratio?
A)
Sale of goods for cash done
clear
B)
Sale of goods on credit done
clear
C)
Issue of new shares for cash done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer11)
Assuming that the current ratio is 2:1, cash paid against bills payable would:
A)
increase current ratio done
clear
B)
decrease current ratio done
clear
C)
have no effect on current ratio done
clear
D)
decrease gross profit ratio done
clear
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question_answer12)
A company's quick ratio is 1.5 : 1; current liabilities are Rs. 2,00,000 and inventory is Rs. 1,80,000. Current ratio will be:
A)
0.9 : 1 done
clear
B)
1.9 : 1 done
clear
C)
1.4 : 1 done
clear
D)
2.4 : 1 done
clear
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question_answer13)
Current Ratio is:
A)
Solvency Ratio done
clear
B)
Liquidity Ratio done
clear
C)
Activity Ratio done
clear
D)
Profitability Ratio done
clear
View Solution play_arrow
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question_answer14)
Quick Ratio is also known as:
A)
Liquid Ratio done
clear
B)
Current Ratio done
clear
C)
Working Capital Ratio done
clear
D)
None of the above done
clear
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question_answer15)
Patents and copyrights fall under the category of:
A)
Current Assets done
clear
B)
Liquid Assets done
clear
C)
Intangible Assets done
clear
D)
None of these done
clear
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question_answer16)
A company's current ratio is 2 : 1. After cash payment to some of creditors, current ratio will:
A)
decrease done
clear
B)
increase done
clear
C)
as before done
clear
D)
None of these done
clear
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question_answer17)
Assuming liquid ratio of 1.2 :1, cash collected from debtors would:
A)
increase liquid ratio done
clear
B)
decrease liquid ratio done
clear
C)
have no effect on Liquid ratio done
clear
D)
increase gross profit ratio done
clear
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question_answer18)
Revenue from Operations Rs. 9,00,000, Gross Profit 25% on Cost, Operating Expenses Rs. 90,000, Operating Ratio will be:
A)
100% done
clear
B)
50% done
clear
C)
90% done
clear
D)
10% done
clear
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question_answer19)
Current Ratio is:
A)
Liquid Assets/Current Assets done
clear
B)
Fixed Assets/Current Assets done
clear
C)
Current Assets/Current Liabilities done
clear
D)
Liquid Assets/Current Liabilities done
clear
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question_answer20)
The ............ of a business firm is measured by its ability to satisfy its short-term obligations as they become due.
A)
activity done
clear
B)
liquidity done
clear
C)
debt done
clear
D)
profitability done
clear
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question_answer21)
If Opening Inventory is Rs. 1,20,000, Cost of Revenue from Operations is Rs. 10,00,000 and Inventory Turnover Ratio is 5 times, then Closing Inventory will be:
A)
Rs. 3,20,000 done
clear
B)
Rs. 2,80,000 done
clear
C)
Rs. 1,60,000 done
clear
D)
Rs. 4,00,000 done
clear
View Solution play_arrow
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question_answer22)
Inventory Turnover Ratio is:
A)
Average Inventory/Revenue from Operations done
clear
B)
Average Inventory/Cost of Revenue from Operations done
clear
C)
Cost of Revenue from Operations/Average Inventory done
clear
D)
Gross Profit/Average Inventory done
clear
View Solution play_arrow
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question_answer23)
Ideal Current Ratio is:
A)
1:1 done
clear
B)
1:2 done
clear
C)
1:3 done
clear
D)
2:1 done
clear
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question_answer24)
If the inventory turnover ratio is divided into 365, it becomes a measure of:
A)
sales efficiency done
clear
B)
average age of inventory done
clear
C)
sales turnover done
clear
D)
average collection period done
clear
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question_answer25)
Liquid Assets:
A)
Current Assets - Prepaid Exp. done
clear
B)
Current Assets - Inventory + Prepaid Exp. done
clear
C)
Current Assets - Inventory - Prepaid Exp. done
clear
D)
Current Assets + Inventory - Prepaid Exp. done
clear
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question_answer26)
Current assets include only those assets which are expected to be realised within:
A)
3 months done
clear
B)
6 months done
clear
C)
1 year done
clear
D)
2 years done
clear
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question_answer27)
The............ is a measure of Liquidity which excludes............. generally the least liquid assets.
A)
current ratio, accounts receivable done
clear
B)
liquid ratio, accounts receivable done
clear
C)
current ratio, inventory done
clear
D)
liquid ratio, inventory done
clear
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question_answer28)
Debt Equity Ratio is:
A)
Liquidity Ratio done
clear
B)
Solvency Ratio done
clear
C)
Activity Ratio done
clear
D)
Operating Ratio done
clear
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question_answer29)
The............ ratios provide the information critical to the long run operation of the firm.
A)
liquidity done
clear
B)
activity done
clear
C)
solvency done
clear
D)
profitability done
clear
View Solution play_arrow
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question_answer30)
Which of the following is not operating expenses?
A)
Office Expenses done
clear
B)
Felling Expenses done
clear
C)
Bad Debts done
clear
D)
Loss by Fire done
clear
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question_answer31)
The formula for calculating Trade Payables Turnover Ratio is:
A)
\[\frac{Net Credit Purchases\,}{Average Creditors}\] done
clear
B)
\[\frac{Net Credit Purchases\,}{~Average Creditors + Average Bills Payable}\] done
clear
C)
\[\frac{Cash Purchases\,}{~Total Creditors}\] done
clear
D)
None of the above done
clear
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question_answer32)
Calculate Operating Profit Ratio if Revenue from Operations is Rs. 5,00,000, Operating Profit is Rs. 75,000.
A)
25% done
clear
B)
12% done
clear
C)
13.33% done
clear
D)
15% done
clear
View Solution play_arrow
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question_answer33)
Debt Equity Ratio is:
A)
Long-term Debts/Shareholder's Funds done
clear
B)
Short-term Debts/Equity Capital done
clear
C)
Total Assets/Long-term Debts done
clear
D)
Shareholder's Funds/Total Assets done
clear
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question_answer34)
If debt equity ratio exceeds............. it indicates risky financial position.
A)
1:1 done
clear
B)
2:1 done
clear
C)
1:2 done
clear
D)
3:1 done
clear
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question_answer35)
The formula for calculating the Trade Receivables Turnover Ratio is:
A)
\[\frac{Total Revenue from Operations}{~Average Debtors}\] done
clear
B)
\[\frac{\operatorname{Credit} Revenue from Operations}{~Average Debtors}\] done
clear
C)
\[\frac{Net Credit Revenue from Operations}{~Average Debtors + Average Bills Receivable}\] done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer36)
The two basic measures of operational efficiency of a company are: (CBSE SQP 2019)
A)
Inventory Turnover Ratio and Working Capital Turnover Ratio done
clear
B)
Liquid Ratio and Operating Ratio done
clear
C)
Liquid Ratio and Current Ratio done
clear
D)
Gross Profit Margin and Net Profit Margin done
clear
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question_answer37)
If Total Assets are Rs. 1,25,000, Total Debts; i.e., external debts are Rs. 1,00,000 and Current Liabilities are Rs. 50,000, Debt-equity Ratio will be:
A)
1:1 done
clear
B)
1:2 done
clear
C)
2:1 done
clear
D)
None of these done
clear
View Solution play_arrow
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question_answer38)
Proprietary Ratio is:
A)
Long-term Debts/Shareholder's Funds done
clear
B)
Total Assets/Shareholder's Funds done
clear
C)
Shareholder's Funds/Total Assets done
clear
D)
Shareholder's Funds/Fixed Assets done
clear
View Solution play_arrow
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question_answer39)
In debt equity ratio, debt refers to:
A)
short-term debts done
clear
B)
long-term debts done
clear
C)
total debts done
clear
D)
debentures and current liabilities done
clear
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question_answer40)
Operating Ratio is:
A)
Cost of Revenue from Operations + Selling Expenses/Net Revenue from Operations done
clear
B)
Cost of Production + Operating Expenses/Net Revenue from Operations done
clear
C)
Cost of Revenue from Operations + Operating Expenses/ Net Revenue from Operations done
clear
D)
Cost of Production/Net Revenue from Operations done
clear
View Solution play_arrow
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question_answer41)
A transaction involving an increase in current ratio but no change in working capital:
A)
purchase of goods on credit done
clear
B)
cash payment of non-current liability done
clear
C)
payment to a trade creditor done
clear
D)
sale of fixed assets for cash done
clear
View Solution play_arrow
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question_answer42)
A Company's Liquid Assets are Rs. 2,00,000, Inventory is Rs. 1,00,000, Prepaid Expenses are Rs. 20,000 and Working Capital is Rs. 2,40,000. Its Current Ratio will be:
A)
1.33 :1 done
clear
B)
4 : 1 done
clear
C)
2.5 : 1 done
clear
D)
3 : 1 done
clear
View Solution play_arrow
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question_answer43)
Fixed Assets Rs. 5,00,000; Current Assets Rs. 3,00,000; Equity Share Capital Rs. 4,00,000. Reserve Rs. 2,00,000; Long-term Debts Rs. 40,000. Proprietary Ratio will be:
A)
75% done
clear
B)
80% done
clear
C)
125% done
clear
D)
133% done
clear
View Solution play_arrow
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question_answer44)
Proprietary ratio indicates the relationship between proprietor's funds and:
A)
Long-term Debts done
clear
B)
Short-term and Long-term Debts done
clear
C)
total Assets done
clear
D)
Debentures done
clear
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question_answer45)
Cost of Revenue from Operations =
A)
Revenue from Operations - Net Profit done
clear
B)
Revenue from Operations - Gross Profit done
clear
C)
Revenue from Operations - Closing Inventory done
clear
D)
Purchases - Closing Inventory done
clear
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question_answer46)
A transaction involving decrease in current ratio and an increase in quick ratio:
A)
purchase of stock-in-trade for cash done
clear
B)
sale of non-current assets for cash done
clear
C)
sale of stock-in-trade at loss done
clear
D)
cash payment of non-current liability done
clear
View Solution play_arrow
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question_answer47)
Long-term solvency is indicated by:
A)
Current Ratio done
clear
B)
Quick Ratio done
clear
C)
Net Profit Ratio done
clear
D)
Debt/Equity Ratio done
clear
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question_answer48)
The formula for calculating the debt equity ratio is:
A)
\[\frac{Short-term Debts}{~~Shareholders' Funds}\] done
clear
B)
\[\frac{Shareholders' Funds}{~~Fixed\,Assets}\] done
clear
C)
\[\frac{Short-term+Long-term Debts}{~~Shareholders' Funds}\] done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer49)
A transaction involving increase in both current ratio and quick ratio:
A)
purchase of stock-in-trade on credit done
clear
B)
Sale of stock at loss done
clear
C)
cash payment of non-current liability done
clear
D)
sale of non-current asset for cash done
clear
View Solution play_arrow
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question_answer50)
Debt equity ratio of a company is 1:2.Which of the following transaction will increase it:
A)
issue of new shares for cash done
clear
B)
redemption of debentures done
clear
C)
issue of debentures for cash done
clear
D)
goods purchased on credit done
clear
View Solution play_arrow
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question_answer51)
Satisfactory ratio between long-term debts and shareholders' funds is:
A)
1:1 done
clear
B)
3:1 done
clear
C)
1:2 done
clear
D)
2:1 done
clear
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question_answer52)
Name the difference between capital employed and non- current liabilities:
A)
Shareholders' Funds done
clear
B)
Capital Employed done
clear
C)
Total Debts done
clear
D)
Total Assets done
clear
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question_answer53)
Sincere Ltd. has a Proprietary Ratio of 25%. To maintain this ratio at 30%, management may:
A)
increase equity done
clear
B)
reduce debt done
clear
C)
Either [a] or [b] done
clear
D)
increase current assets done
clear
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question_answer54)
From the following which formula is correct for computing operating ratio?
A)
\[\frac{Operating Cost}{~~Revenue from Operations}\times 100\] done
clear
B)
\[\frac{Revenue from Operations}{~~Operating Cost}\times 100\] done
clear
C)
\[\frac{Operating Cost}{~~Cost of Revenue from Operations}\] done
clear
D)
\[\frac{Gross Profit}{~~ Revenue from Operations}\times 100\] done
clear
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question_answer55)
From the following, which ratio is not a part of activity ratio?
A)
Inventory Turnover Ratio done
clear
B)
Trade Receivables Turnover Ratio done
clear
C)
Working Capital Turnover Ratio done
clear
D)
Debt to Equity Ratio done
clear
View Solution play_arrow
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question_answer56)
Which ratio is not a part of solvency ratio?
A)
Current Ratio done
clear
B)
Debt to Equity Ratio done
clear
C)
Total Assets to Debt Ratio done
clear
D)
Proprietary Ratio done
clear
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question_answer57)
Young India Ltd. has a operating profit ratio of 20%. To maintain this ratio at 25%, management may:
A)
Increase selling price of stock-in-trade done
clear
B)
Reduce cost of revenue from operations done
clear
C)
Increase selling price of stock-in-trade and to reduce cost - of revenue from operations done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer58)
A transaction involving a decrease in both current ratio and quick ratio is:
A)
sale of non-current asset for cash done
clear
B)
sale of stock-in-trade at loss done
clear
C)
cash payment of a current liability done
clear
D)
purchase of stock-in-trade on credit done
clear
View Solution play_arrow
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question_answer59)
A transaction involving a decrease in debt-equity ratio and increase in current ratio is:
A)
issue of debentures against the purchase of fixed assets done
clear
B)
issue of debentures for cash done
clear
C)
redemption of preference shares for cash done
clear
D)
issue of equity shares for cash done
clear
View Solution play_arrow
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question_answer60)
Current ratio is 2 : 1 on the sale of fixed asset (book value Rs. 20,000) for Rs. 18,000, state whether the current ratio will:
A)
improve done
clear
B)
decline done
clear
C)
not change done
clear
D)
can't say done
clear
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question_answer61)
If inventory is Rs. 1,00,000, current assets Rs. 8,00,000 and current liabilities Rs. 4,00,000, then what will be the liquid ratio?
A)
1.75 : 1 done
clear
B)
2 : 1 done
clear
C)
2 : 3 done
clear
D)
3 : 1 done
clear
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question_answer62)
The......... ratios are primarily measures of return.
A)
liquidity done
clear
B)
activity done
clear
C)
debt done
clear
D)
profitability done
clear
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question_answer63)
Test of solvency of a business means:
A)
its ability to meet the interest costs done
clear
B)
its ability to meet the long-term liabilities as and when they become due done
clear
C)
its ability to pay dividends to equity shareholders done
clear
D)
All of the above done
clear
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question_answer64)
The ......... may indicate that the firm is experiencing stock outs and lost sales.
A)
average payment period done
clear
B)
inventory turnover ratio done
clear
C)
average collection period done
clear
D)
quick ratio done
clear
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question_answer65)
Calculate interest coverage ratio. If profit after interest and tax Rs. 2,10,000, Rate of tax 40%, 15% debenture Rs. 3,00,000.
A)
6 times done
clear
B)
8.8 times done
clear
C)
11 times done
clear
D)
4 times done
clear
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question_answer66)
Consider the following information: Long-term borrowings Rs. 2,00,000 Long-term provision Rs. 1,00,000 Current liabilities Rs. 50,000 Non-current assets Rs. 3,60,000 Current assets Rs. 90,000 Proprietary ratio will be:
A)
22.2% done
clear
B)
21.8% done
clear
C)
36% done
clear
D)
None of these done
clear
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question_answer67)
.......... are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.
A)
Customers done
clear
B)
Stockholders done
clear
C)
Lenders and suppliers done
clear
D)
Borrowers and buyers done
clear
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question_answer68)
The satisfactory ratio between internal and external equity is:
A)
1:1 done
clear
B)
2:1 done
clear
C)
3 :1 done
clear
D)
4:1 done
clear
View Solution play_arrow
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question_answer69)
For calculating quick assets, ............... and ............... are excluded from current assets.
A)
debtors and inventory done
clear
B)
inventory and bills payable done
clear
C)
cash in hand and bank balance done
clear
D)
inventory and prepaid expenses done
clear
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question_answer70)
From the following information, calculate operating profit ratio. Opening stock Rs. 10,000; purchases Rs. 1,20,000; revenue from operations Rs. 4,00,000; purchase returns Rs. 5,000; returns from revenue from operations Rs. 15,000; selling expenses Rs. 70,000; administrative expenses Rs. 40,000; closing stock Rs. 60,000.
A)
54.5% done
clear
B)
62.8% done
clear
C)
90.2% done
clear
D)
None of these done
clear
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question_answer71)
................ analysis involves the comparison of different firm's financial ratios at the same point of time.
A)
Time series done
clear
B)
Cross-sectional done
clear
C)
Marginal done
clear
D)
Quantitative done
clear
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question_answer72)
Debt to equity ratio measures............... of the business.
A)
profitability done
clear
B)
activity done
clear
C)
short-term financial position done
clear
D)
long-term financial position done
clear
View Solution play_arrow
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question_answer73)
Cost of goods sold = ................
A)
Revenue from Operations - Gross Profit done
clear
B)
Revenue from Operations - Net Profit done
clear
C)
Revenue from operations proceeds done
clear
D)
None of the above done
clear
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question_answer74)
The net income of the company should ideally be ...............times of the fixed interest charges.
A)
3 or 4 done
clear
B)
4 or 5 done
clear
C)
5 or 6 done
clear
D)
6 or 7 done
clear
View Solution play_arrow
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question_answer75)
A firm's current assets are Rs. 1,60,000, current ratio is 2 : 1, cost of revenue from operations is 2,40,000, its working capital turnover ratio will be:
A)
3 times done
clear
B)
2 times done
clear
C)
4 times done
clear
D)
8 times done
clear
View Solution play_arrow
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question_answer76)
From the following, calculate current assets: |
Cash balance Rs. 5,000 |
Trade payable Rs. 40,000 |
Inventory Rs. 50,000 |
Trade receivable Rs. 65,000 |
Prepaid expenses Rs. 10,000 |
Creditors Rs. 30,000 |
A)
Rs. 1,25,000 done
clear
B)
Rs. 1,30,000 done
clear
C)
Rs. 1,60,000 done
clear
D)
Rs. 1,20,000 done
clear
View Solution play_arrow
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question_answer77)
Ideal debt ratio is:
A)
1 : 2 done
clear
B)
2 : 3 done
clear
C)
3 : 2 done
clear
D)
2 : 1 done
clear
View Solution play_arrow
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question_answer78)
The credit sale of M/s Dinesh & Sons is Rs. 21,00,000, It's debtors and bills receivables at the end of the accounting period amounted to Rs. 2,00,000 and Rs. 1,50,000 respectively. What will be the debtors turnover ratio?
A)
4 times done
clear
B)
5 times done
clear
C)
6 times done
clear
D)
7 times done
clear
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question_answer79)
Ratio analysis under financial analysis is significant as it:
A)
ignores qualitative factors done
clear
B)
helps in window-dressing done
clear
C)
does not requires any standards done
clear
D)
helps in locating weak points of the firm done
clear
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question_answer80)
ABC Co. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was:
A)
30 days done
clear
B)
36 days done
clear
C)
47 days done
clear
D)
37 days done
clear
View Solution play_arrow
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question_answer81)
Calculate operating ratio, if Cost of Revenue from Operations Rs. 50,000, Revenue from Operations Rs. 1,50,000 and Operating Expenses Rs. 20,000.
A)
45% done
clear
B)
46.7% done
clear
C)
48.1% done
clear
D)
42.2% done
clear
View Solution play_arrow
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question_answer82)
Ratios provide a ............... measure of a company's performance and condition.
A)
definitive done
clear
B)
gross done
clear
C)
relative done
clear
D)
qualitative done
clear
View Solution play_arrow
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question_answer83)
Which of the following measure the firm's ability to meet its long-term obligations?
A)
Liquid Ratios done
clear
B)
Activity Ratios done
clear
C)
Profitability Ratios done
clear
D)
Solvency Ratios done
clear
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question_answer84)
Liquid ratio is also known as:
A)
Acid Test Ratio done
clear
B)
Quick Assets Ratio done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer85)
The primary concern of creditors when assessing the strength of a firm is the firm's................
A)
fixed assets done
clear
B)
leverage done
clear
C)
short-term liquidity done
clear
D)
share price done
clear
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question_answer86)
Higher the ratio, lower is the profitability, is applicable to:
A)
gross profit done
clear
B)
operating ratio done
clear
C)
net profit ratio done
clear
D)
earning per share done
clear
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question_answer87)
100 - Operating Profit ratio is equal to................
A)
Operating Ratio done
clear
B)
Operating Net Profit Ratio done
clear
C)
Gross Profit Ratio done
clear
D)
Current Ratio done
clear
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question_answer88)
Which of the following transaction will improve the quick ratio?
A)
Purchase of inventory for cash done
clear
B)
Cash collected from debtors done
clear
C)
Sale of goods (costing Rs. 10,000 for Rs. 50,000) done
clear
D)
None of the above done
clear
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question_answer89)
Normally absolute ratio is further refinement of liquid or quick ratio. Which of the following is considered fairly satisfactory?
A)
1:1 done
clear
B)
0.5 :1 done
clear
C)
1.5:1 done
clear
D)
1:1.5 done
clear
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question_answer90)
The............... of a business firm is measured by its ability to satisfy its short-term obligations as they become due.
A)
Activity done
clear
B)
current ratio done
clear
C)
debt done
clear
D)
profitability done
clear
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question_answer91)
A firm has current ratio of 4 : 1 and quick ratio of 2.5 : 1. Assuming inventories are Rs. 15,000, find out total current assets?
A)
Rs. 10,000 done
clear
B)
Rs. 25,000 done
clear
C)
Rs. 40,000 done
clear
D)
Rs. 15,000 done
clear
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question_answer92)
The immediate solvency ratio is:
A)
quick ratio done
clear
B)
current ratio done
clear
C)
debtors turnover ratio done
clear
D)
stock turnover ratio done
clear
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question_answer93)
Assuming that debt to equity ratio is 2 :1, then which of the following transaction will have no effect on it?
A)
Purchase of a fixed assets by taking loan done
clear
B)
Sale of fixed assets (book value Rs. 40,000) at loss of Rs. 15,000 done
clear
C)
Issue of bonus share done
clear
D)
Declaration of final dividend done
clear
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question_answer94)
Total purchase Rs. 1,70,000, cash purchases Rs. 16,000, purchase return Rs. 8,000, creditors at the end of the year Rs. 32,000, creditors in the beginning Rs. 24,000. What will be the creditors turnover ratio?
A)
5.12 times done
clear
B)
5.16 times done
clear
C)
5.21 times done
clear
D)
5.25 times done
clear
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question_answer95)
The following groups of ratios are primarily measure risk:
A)
liquidity, activity and profitability done
clear
B)
liquidity, activity and inventory done
clear
C)
liquidity, activity and debt done
clear
D)
liquidity, debt and profitability done
clear
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question_answer96)
The......... measures the activity of a firm's inventory.
A)
average collection period done
clear
B)
inventory turnover done
clear
C)
liquid ratio done
clear
D)
current ratio done
clear
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question_answer97)
Which ratio measures the velocity of conversion of stock into sales?
A)
Working Capital Turnover Ratio done
clear
B)
Inventory Turnover Ratio done
clear
C)
Current Ratio done
clear
D)
Liquid Ratio done
clear
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question_answer98)
Ideal proprietary ratio should be:
A)
25% done
clear
B)
50% done
clear
C)
75% done
clear
D)
90% done
clear
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question_answer99)
Average payment period is particularly useful for ............... since it helps in knowing to bill-paying patterns of the firm.
A)
suppliers and lenders done
clear
B)
customers done
clear
C)
debtors done
clear
D)
shareholder's done
clear
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question_answer100)
The ideal ratio between total Long-term funds and total Long- term Loans is:
A)
4 : 1 done
clear
B)
3 : 1 done
clear
C)
2 : 1 done
clear
D)
1 : 1 done
clear
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question_answer101)
Which of the following is a profitability ratio?
A)
Debt of Equity Ratio done
clear
B)
Return on Investment done
clear
C)
Proprietary Ratio done
clear
D)
Quick Ratio done
clear
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question_answer102)
Quick assets do not include: (CBSE 2020)
A)
Cash in Hand done
clear
B)
Marketable Securities done
clear
C)
Prepaid Expenses done
clear
D)
Trade Receivables done
clear
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question_answer103)
If current ratio is 2.5 :1 and current liabilities Rs. 4,00,000. Its working capital will be:
A)
Rs. 6,00,000 done
clear
B)
Rs. 7,50,000 done
clear
C)
Rs. 8,00,000 done
clear
D)
Rs. 14,00,000 done
clear
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question_answer104)
Which of the following is not a profitability ratio?
A)
Proprietary Ratio done
clear
B)
Gross Profit Ratio done
clear
C)
Operating Ratio done
clear
D)
Net Profit Ratio done
clear
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question_answer105)
Aggregate of shareholder's funds and total debts:
A)
Total Debts done
clear
B)
Capital Employed done
clear
C)
Total Assets done
clear
D)
Non-current Assets done
clear
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question_answer106)
If revenue from operations is Rs. 3,20,000 and gross profit is Rs. 80,000, gross profit ratio will be:
A)
30% done
clear
B)
25% done
clear
C)
40% done
clear
D)
50% done
clear
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question_answer107)
Calculate current ratio if current assets are Rs.8,00,000, inventories Rs. 4,00,000, working capital Rs. 4,80,000.
A)
1:1 done
clear
B)
2.5:1 done
clear
C)
2:1 done
clear
D)
1:2 done
clear
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question_answer108)
Which of the following ratios is useful in evaluating credit and collection policies?
A)
Average payment period done
clear
B)
Current ratio done
clear
C)
Average collection period done
clear
D)
Inventory turnover ratio done
clear
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question_answer109)
Which of the following ratios are primarily measure of return?
A)
Liquidity done
clear
B)
Activity done
clear
C)
Debt done
clear
D)
Profitability done
clear
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question_answer110)
Net working capital is defined as:
A)
total assets less current assets done
clear
B)
the excess of current assets over current liabilities done
clear
C)
current liabilities less current assets done
clear
D)
marketable securities and cash done
clear
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question_answer111)
............. ratios are a measure of the speed with which various accounts are converted into sales or cash.
A)
Activity done
clear
B)
Liquidity done
clear
C)
Debt done
clear
D)
Profitability done
clear
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