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Match List - I with List - II

List - IList - II
(a) Working Capital Turnover Ratio(i) Quick AssetsCurrent liabilities\frac{\text{Quick Assets}}{\text{Current liabilities}}
(b) Acid Test Ratio(ii) Operating ProfitRev. from operations×100\frac{\text{Operating Profit}}{\text{Rev. from operations}} \times 100
(c) Operating Profit Ratio(iii) Revenue from operationWorking capital\frac{\text{Revenue from operation}}{\text{Working capital}}
(d) Trade Payables Turnover Ratio(iv) Net Credit Revenue from operationAverage Trade payables\frac{\text{Net Credit Revenue from operation}}{\text{Average Trade payables}}

Choose the correct answer from the options given below :

Solution

✅ Correct Option: 1

Working Capital Turnover = Revenue from Operations / Working Capital (iii). Acid Test (Quick) Ratio = Quick Assets / Current Liabilities (i). Operating Profit Ratio = (Operating Profit / Revenue from Operations) * 100 (ii). Trade Payables Turnover = Net Credit Purchases (here shown as Revenue) / Average Trade Payables (iv).

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