1.
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.
1 out of 10
2.
……………….helps to assess the short term solvency of a business.
2 out of 10
3.
Which one of the following is correct?
(i) Quick Ratio can be more than Current Ratio.
(ii) High Inventory Turnover ratio is good for the organisation, except when goods are bought in small lots or sold quickly at low margins to realise cash.
(iii) Sum of Operating Ratio and Operating Profit ratio is always 100%
3 out of 10
4.
From the following calculate Interest coverage ratio Net profit after tax ₹ 12,00,000; 10% debentures Rs 1,00,00,000; Tax Rate 40%
4 out of 10
5.
The ___________ may indicate that the firm is experiencing stock outs and lost sales.
5 out of 10
6.
Current ratio of Vidur Pvt. Ltd. is 3:2. Accountant wants to maintain it at 2:1. Following options are available.
(i) He can repay Bills Payable
(ii) He can purchase goods on credit
(iii) He can take short term loan
Choose the correct option
6 out of 10
7.
Net Assets minus Capital Reserve is:
7 out of 10
8.
Which of the following are included in traditional classification of ratios?
(i) Liquidity Ratios.
(ii) Statement of Profit and loss Ratios.
(iii) Balance Sheet Ratios.
(iv) Profitability Ratios.
(v) Composite Ratios.
(vi) Solvency Ratios.
8 out of 10
9.
The following groups of ratios primarily measure risk:
9 out of 10
10.
Which one of the following is correct?
(i) A ratio is an arithmetical relationship of one number to another
number.
(ii) Liquid ratio is also known as acid test ratio.
(iii) Ideally accepted current ratio is 1: 1.
(iv) Debt equity ratio is the relationship between outsider’s funds and shareholders’ funds.
In the context of the above two statements, which of the following options is correct?
10 out of 10
