Accounting Ratios
Class 12 · Accountancy · 47 Questions
State which of the following statements are True or False.
Current liabilities of a company are Rs. 5,60,000, current ratio is 2.5:1 and quick ratio is 2:1. Find the value of the Inventories.
Current ratio = 4.5:1, quick ratio = 3:1. Inventory is Rs. 36,000. Calculate the current assets and current liabilities.
Current assets of a company are Rs. 5,00,000. Current ratio is 2.5:1 and Liquid ratio is 1:1. Calculate the value of current liabilities, liquid assets and inventories.
The following groups of ratios are primarily measure risk:
The _____ ratios are primarily measures of return:
The _____ of business firm is measured by its ability to satisfy its short-term obligations as they become due:
_____ ratios are a measure of the speed with which various accounts are converted into revenue from operations or cash:
The two basic measures of liquidity are:
The _____ is a measure of liquidity which excludes _____, generally the least liquid asset:
The _____ is useful in evaluating credit and collection policies.
The _____ measures the activity of a firm’s inventory.
The _____ may indicate that the firm is experiencing stockouts and lost sales.
ABC Co. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was.
_____ are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.
The _____ ratios provide the information critical to the long run operation of the firm
What do you mean by Ratio Analysis?
What are various types of ratios?
What relationships will be established to study:
The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?