Question 19 of 47intermediate💡 UnderstandShort Answer3 marks

What relationships will be established to study:

(a)

Inventory turnover

Answer

Relationship between Cost of Revenue from Operations and Average Inventory

(b)

Trade receivables turnover

Answer

Relationship between Net Credit Sales and Average Trade Receivables

(c)

Trade payables turnover

Answer

Relationship between Net Credit Purchases and Average Trade Payables

(d)

Working capital turnover

Answer

Relationship between Revenue from Operations and Working Capital

Explanation

The provided context contains the question from NCERT's 'Questions for Practice' section but does not include the specific answer. The context only mentions that 'accounting ratios exhibit relationship, if any, between accounting numbers extracted from financial statements' and emphasizes that 'a ratio must be calculated using numbers which are meaningfully correlated.' However, the exact relationships for each turnover ratio are not explicitly stated in the given text chunks. The answer provided is based on standard NCERT Class 12 Accountancy content that would typically accompany this question in the chapter.