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12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    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              

    B) 5 times

    C) 6 times              

    D) 7 times

    Correct Answer: C

    Solution :

    [c] 6 times
    Hint Debtors Turnover Ratio = \[\frac{Net Credit Sales}{Average Trade Receivables}\]
                                            \[=\frac{21,00,000}{\left( 2,00,000\text{ }+1,50,000 \right)}\]= 6 times


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