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CUET Accountancy 2022 PYQs8 Aug Shift 2. Free, no login required.

Financial Statements

past year questions, CUET Accountancy 2022 8 Aug Shift 2

Ratios

past year questions, Financial Statements, CUET Accountancy 2022 8 Aug Shift 2

Medium

When the ratio is low, the firm is said to have favourable indication.

Solution

✅ Correct Option: 4

For inventory and debtors turnover, higher ratios are favourable (faster movement and collection). Higher operating profit ratio is also favourable. Operating ratio measures operating costs as a percentage of net sales, so a lower operating ratio means better operating efficiency and is the favourable indication.

Related questions:

2025: 30 May Shift 2

Calculate the Current Ratio from the following information:

Particulars(Rs.)
Inventories50,000
Trade receivables50,000
Advance tax4,000
Cash and cash equivalant30,000
Trade payables1,00,000
Short-term borrowings (bank overdraft)4,000

2025: 13 May Shift 1

Current Ratio of the firm is:

2026: 11 May Shift 2

The current ratio is 2 : 1. Which of the following transaction would improve current ratio of a company?

2025: 22 May Shift 1

Which of the following are the objectives of Ratio Analysis?

(A) To know the areas of the business which need more attention.

(B) To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business.

(C) To know about the potential areas which can be improved with the effort in the desired direction.

(D) To provide information derived from financial statements useful for making projections and estimates for the future.

Choose the correct answer from the options given below:

2022: 16 July Shift 2

Make the right combination of the ratios that enables to find the short term liquidity

A. Return on Equity

B. Acid Test Ratio

C. Sacrificing Ratio

D. Inventory Turnover Ratio

E. Current Ratio

Choose the correct answer from the options given below:

2026: 21 May Shift 2

Match the LIST-I with LIST-II

LIST-ILIST-II
A.The ratio provides a measure of the capacity of the business to meet its short-term obligations without any flaw.I. Total Assets to Debt Ratio
B.This ratio measures the extent of the coverage of long-term debts by assets.II. Interest Coverage Ratio
C.This ratio indicates the number of times receivables are turned over and converted into cash in an accounting period.III. Quick Ratio
D.It is a ratio which deals with the servicing of interest on loans. It is a measure of security of interest payable on long-term debts.IV. Trade Receivables Turnover Ratio

Choose the correct answer from the options given below:

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CUET Accountancy Past Year Questions (Topic-Wise)