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Question
______ratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.
Options
Profitability
Turnover
Slovency
Liquidity
Solution
Turnover ratios are calculated for measuring the efficiency of operations of business based on effective utilization of resources.
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RELATED QUESTIONS
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.
A company had a liquid ratio of 1.5: 1 and a current ratio of 2: 1. Its inventory turnover ratio was 6 times. It had total current assets of 2,00,000.
Find out revenue from operations if the goods are sold at a 25% profit on cost.
Gross Profit Ratio indicates the relationship of gross profit to the ___________.
Current Ratio =`""/"Current Liabilities"`
Generally Current Ratio should be ___________.
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.
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 Net Profit Ratio from the following
| Sales | ₹ 3,80,000 |
| Cost of good sold | ₹ 2,60,000 |
| Indirect Exp | ₹ 60,000 |
Calculate Operating Ratio
| Cost of good sold | ₹ 3,50,000 |
| Operating Exp. | ₹ 30,000 |
| Sales | ₹ 5,00,000 |
| Sales Return | ₹ 30,000 |
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 ____________.
When the concept of ratio is defined in respect to the items shown in the financial statements, it is termed as:
When ratios are calculated on the basis of accounting information, they are called:
An accounting ratio is a ____________.
What are the advantages of Ratio Analysis?
______ 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 :
- Obtained a loan from ICICI Bank ₹1,00,000 payable after 5 years.
- Purchased machinery for cash ₹1,50,000.
- Redeemed 9% debentures ₹1,00,000.
- Issued equity shares for purchase of machinery of ₹5,00,000 to the vendors.
- 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.
- 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 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.
