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What is a quick ratio? - Accountancy

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प्रश्न

What is a quick ratio?

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उत्तर

The quick ratio gives the proportion of quick assets to current liabilities. It indicates whether the business concern is in a position to pay its current liabilities and when they become due, out of its quick assets.

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Computation of Ratios
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 9: Ratio Analysis - Very Short Answer Questions [पृष्ठ ३१९]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 9 Ratio Analysis
Very Short Answer Questions | Q II 2. | पृष्ठ ३१९

संबंधित प्रश्‍न

Calculate quick ratio: Total current liabilities ₹ 2,40,000; total current assets ₹ 4,50,000; Inventories ₹ 70,000; Prepaid Expenses ₹ 20,000


Which one of the following is not correctly matched?


Current liabilities ₹ 40,000; Current assets ₹ 1,00,000; Inventory ₹ 20,000. Quick ratio is


What is meant by debt-equity ratio?


What does the return on investment ratio indicate?


How is operating profit ascertained?


The credit revenue from operations of Velavan Ltd, amounted to ₹ 10,00,000. Its debtors and bills receivables at the end of the accounting period amounted to ₹ 1,10,000 and ₹ 1,40,000 respectively. Calculate trade receivables turnover ratio and also collection period in months.


Calculate

  1. Inventory turnover ratio
  2. Trade receivables turnover ratio
  3. Trade payables turnover ratio and
  4. Fixed assets turnover ratio from the following information obtained from Aruna Ltd.
Particulars As of 31st March 2018 (₹) As of 31st March 2019 (₹)
Inventory 3,60,000 4,40,000
Trade receivables 7,40,000 6,60,000
Trade Payable 1,90,000 2,30,000
Fixed assets 6,00,000 8,00,000

Additional information:

  • Revenue from operations for the year ₹ 35,00,000
  • Purchases for the year ₹ 21,00,000
  • Cost of revenue from operation ₹ 16,00,000
    Assume that sales and purchases are for credit.

From the following details of a business concern calculate net profit ratio.

Particulars Amount Rs.
Revenue from operations 9,60,000
Cost of revenue from operations 5,50,000
Office and administration expenses 1,45,000
Selling and distribution expenses 25,000

From the following trading activities of Rovina Ltd. calculate

  1. Gross profit ratio
  2. Net profit ratio
  3. Operating cost ratio
  4. Operating profit ratio
Statement of Profit and Loss
Particulars Rs.
I Revenue from operations 4,00,000
II. Other income:  
Income from investment 4,000
III. Total revenues (I+II) 4,04,000
IV. Expenses:  
Purchases of stock-in-trade 2,10,000
Changes in inventories 30,000
Employee benefits expense 24,000
Other expenses (Administration and selling) 60,000
Total expenses 3,24,000
V. Profit for year 80,000

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