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Accounting Ratios

Accountancy · Class 12 · All

AccountancyClass 12AllMedium
Q1/15
45s

Credit Revenue from Operations is ₹6,00,000. Opening Debtors are ₹80,000, Closing Debtors are ₹1,00,000, and Bills Receivable at year-end are ₹20,000 (Opening Bills Receivable ₹0). What is the Trade Receivables Turnover Ratio?

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All 15 questions in this quiz

  1. If Working Capital is ₹2,00,000 and Cost of Revenue from Operations is ₹10,00,000, what is the Working Capital Turnover Ratio?

    1. 5 Times
    2. 4 Times
    3. 2.5 Times
    4. 8 Times

  2. Which of the following items is EXCLUDED while calculating "Liquid Assets" for the Quick Ratio?

    1. Cash and Bank balances
    2. Trade Receivables (Debtors)
    3. Inventory and Prepaid Expenses
    4. Short-term Marketable Investments

  3. Interest Coverage Ratio measures which aspect of a business enterprise?

    1. Short-term liquidity
    2. Long-term debt servicing capacity
    3. Inventory management efficiency
    4. Asset turnover speed

  4. Net Profit before tax and interest is ₹2,50,000. Total Long-term Capital Employed is ₹10,00,000. What is the Return on Investment (ROI)?

    1. 20%
    2. 25%
    3. 30%
    4. 15%

  5. Operating Profit of a enterprise is ₹1,80,000 and Revenue from Operations is ₹10,00,000. What is the Operating Ratio if non-operating expenses are ₹20,000?

    1. 18%
    2. 82%
    3. 80%
    4. 20%

  6. Net Sales (Revenue from Operations) are ₹8,00,000, Gross Profit is 20% on Cost of Goods Sold. What is the Gross Profit Ratio?

    1. 20%
    2. 16.67%
    3. 25%
    4. 15%

  7. If Trade Receivables Turnover Ratio is 8 Times, what is the Average Collection Period in months?

    1. 1.5 months
    2. 2 months
    3. 3 months
    4. 4 months

  8. Credit Revenue from Operations is ₹6,00,000. Opening Debtors are ₹80,000, Closing Debtors are ₹1,00,000, and Bills Receivable at year-end are ₹20,000 (Opening Bills Receivable ₹0). What is the Trade Receivables Turnover Ratio?

    1. 5 Times
    2. 6 Times
    3. 10 Times
    4. 8 Times

  9. Cost of Revenue from Operations (Cost of Goods Sold) is ₹3,00,000. Opening Inventory is ₹50,000 and Closing Inventory is ₹70,000. What is the Inventory Turnover Ratio?

    1. 4 Times
    2. 5 Times
    3. 6 Times
    4. 4.2 Times

  10. From the following details, calculate the Proprietary Ratio: Share Capital ₹3,00,000, Reserves and Surplus ₹1,00,000, Non-Current Assets ₹5,00,000, Current Assets ₹3,00,000.

    1. 50%
    2. 60%
    3. 40%
    4. 80%

  11. If Total Assets are ₹10,00,000, Total Debt is ₹6,00,000, and Current Liabilities are ₹2,00,000, what is the Total Assets to Debt Ratio?

    1. 2.5:1
    2. 1.67:1
    3. 2.0:1
    4. 1.25:1

  12. Given Equity Share Capital ₹4,00,000, Reserves and Surplus ₹1,00,000, 10% Debentures ₹3,00,000, and Current Liabilities ₹2,00,000. What is the Debt-to-Equity Ratio of the firm?

    1. 0.6:1
    2. 0.75:1
    3. 1.6:1
    4. 0.5:1

  13. Which of the following transactions will IMPROVE the Quick Ratio of a firm if its initial Quick Ratio is 0.8:1?

    1. Purchase of goods for cash
    2. Sale of goods costing ₹20,000 for ₹25,000 on credit
    3. Payment to creditors
    4. Purchase of furniture for cash

  14. A firm's Liquid Ratio is 1.2:1 and its Current Ratio is 2:1. If its Current Liabilities are ₹1,00,000, what is the value of Inventory, assuming prepaid expenses are Nil?

    1. ₹80,000
    2. ₹1,20,000
    3. ₹2,00,000
    4. ₹40,000

  15. Current Liabilities of a company are ₹2,00,000, and its Current Ratio is 2.5:1. If the company pays off a Trade Payable of ₹50,000 in cash, what will be the new Current Ratio?

    1. 2.5:1
    2. 3:1
    3. 2:1
    4. 3.33:1