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Generally Current Ratio should be ___________. - Book Keeping and Accountancy

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प्रश्न

Generally Current Ratio should be ___________.

विकल्प

  • 2:1

  • 1:1

  • 1:2

  • 3:1

MCQ
रिक्त स्थान भरें

उत्तर

Generally Current Ratio should be 2:1.

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अध्याय 9: Analysis of Financial Statements - Exercise 9.1 (Objective Questions) [पृष्ठ ३७५]

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बालभारती Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
अध्याय 9 Analysis of Financial Statements
Exercise 9.1 (Objective Questions) | Q A. 8. | पृष्ठ ३७५

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संबंधित प्रश्न

The current ratio of Z. Ltd is 1: 1. A state with reason which of the following transaction would

1. increase;
2. decrease or
3. not change the ratio.

1. Included in the trade payables was a bill payable of  Rs 3,000 which was met on maturity

2. Debentures of Rs 50,000 were converted into Equity Share


State whether following statement is true or false.
Ratio Analysis is useful for inter-firm comparison.


Give one word/term/ phrase for the following statement
A particular mathematical number showing relationship between two accounting figures.


Short Answer Question

What do you mean by Ratio Analysis?


Long Answer Question

What are liquidity ratios? Discuss the importance of current and liquid ratio.


Handa Ltd.has inventory of Rs 20,000. Total liquid assets are Rs 1,00,000 and quick ratio is 2:1. Calculate current ratio.


Gross Profit Ratio indicates the relationship of gross profit to the ___________.


Current Ratio =`""/"Current Liabilities"`


Give one word/term/phrase for the following statement.

The ratio measures the relationship between Gross Profit and Net Sales.


Give one word/term/phrase for the following statement.

The ratio that establishes relationship between Quick Assets and Current Liabilities


State true or false with reason.

Activity Ratios Turnover Ratios are the same.


State true or false with reason.

Current Ratio measures the liquidity of the business.


State true or false with reason.

Usually current ratio should be 3:1.


Answer in one sentence only.

Give the formula of Gross Profit Ratio?


Answer in one sentence only.

Give the formula of gross profit?


Answer in one sentence only.

Give the formula of current ratio?


A Compay had the following Current Assets and Current Liabilities

Debtors   ₹ 1,20000 Creditors  ₹ 60,000
Bills Payable  ₹ 40,000 Stock ₹ 60,000
Loose Tools  ₹ 20,000 Bank overdraft ₹ 20,000

Calculate Current Ratio.


Current Liabilities = ₹ 3,00,000

Working Capital  = ₹ 8,00,000

Inventory = ₹ 2,00,000

Calculate Quick Ratio.


Calculate the Gross Profit Ratio

Sales ₹ 2,70,000
Net purchases ₹ 1,50,000
Sales Ratio ₹ 20,000
Closing Stock ₹ 25,000
Operating Stock ₹ 45,000

Calculate

1) Current Assets ₹ 3,00,000
2) Current Liabilities ₹ 1,00,000

What is current Ratio.


From the following Balance Sheet of Konal Traders prepare cash flow statement.

Liabilities 31.3.17 (₹) 31.3.18 (₹) Assets 31.3.17 (₹) 31.3.178 (₹)
Share Capital 2,00,000 2,50,000 Cash 30,000 47,000
Creditors 70,000 45,000 Debtors 1,20,000 1,15,000
Profit and Loss A/c 10,000 23,000 Stock 80,000 90,000
      Land 50,000 66,000
  2,80,000 3,18,000   2,80,000 3,18,000

Accounting ratios are an important tool of ____________.


An accounting ratio is a ____________.


What are the advantages of Ratio Analysis?


What are the Limitations of Ratio Analysis?


Current Assets: ₹ 1,00,000. Current Liabilities : ₹ 60,000. Calculate Current Ratio.


______ ratios are calculated to determine the ability of the business to service its debt in the long run.


The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transaction will increase, decrease or not change the debt equity ratio :

  1. Obtained a loan from ICICI Bank ₹1,00,000 payable after 5 years.
  2. Purchased machinery for cash ₹1,50,000.
  3. Redeemed 9% debentures ₹1,00,000.
  4. Issued equity shares for purchase of machinery of ₹5,00,000 to the vendors.

Which one of the following statement is/are correct?

  1.  Quick ratio is considered better than current ratio as a measure of liquidity position of business.
  2. Debt-equity ratio measures the short-term solvency of the business.
  3. Interest coverage ratio reveals the number of times interest on long-term debts is covered by the profits available for interest.

______ratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.


  1. A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6 times. It had total current assets of ₹ 8,00,000. Find out annual sales if goods are sold at 25% profit on cost.
  2. Calculate debt to capital employed ratio from the following information.
    Shareholder funds ₹ 15,00,000
    8% Debenture ₹ 7,50,000
    Current liabilities ₹ 2,50,000
    Non-current Assets ₹ 17,50,000
    Current Assets ₹ 7,50,000

Calculate Gross profit ratio:
Sales = ₹ 4,32,000, Net Purchase = ₹ 2,40,000, Sales return = ₹ 32,000, Closing stock = ₹ 40,000, Opening stock = ₹ 72,000.


Calculate Net profit ratio from the following:
Sales = ₹ 6,08,000, Cost of goods sold = ₹ 4,16,000,
Indirect expenses = ₹ 96,000.


Calculate operating ratio:
Cost of goods sold= ₹ 5,60,000, Operating expenses= ₹ 48,000,
Sales = ₹ 8,00,000, Sales Return= ₹ 48,000.


Calculate gross profit ratio. Sales = ₹ 5,00,000, Sales return = ₹ 50,000 and Cost of goods sold = ₹ 2,75,000.


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