1.
A company extends credit term of 45 days to its customers, its credit collection would be considered poor if its average collection period was:
1 out of 10
2.
If 365 is divided by Inventory turnover ratio, it becomes a measure of:
2 out of 10
3.
Cost of Revenue from operations ₹ 15,00,000, Current Assets ₹4,00,000, Current Liabilities ₹1,50,000. Find its Working Capital Turnover Ratio.
3 out of 10
4.
The …………..indicates the percentage of each sales rupee remaining after the firm has paid cost of goods sold.
4 out of 10
5.
Higher the ratio, the more favourable it is, does not stand true for:
5 out of 10
6.
If selling price is fixed 25% above the cost, the Gross Profit ratio is:
6 out of 10
7.
Net Revenue from Operation ₹ 4,00,000, Average inventory ₹ 50,000, Gross Loss on sales 25%. Find Inventory Turnover Ratio:
7 out of 10
8.
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
8 out of 10
9.
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%.
9 out of 10
10.
From the following calculate Interest coverage ratio
Net profit after tax Rs 12,00,000;
10% debentures Rs 1,00,00,000;
Tax Rate 40%
10 out of 10
