Financial Statements

Ratios

Easy

Current ratio is 2.5, current liabilities Rs. 25,000, the amount of current assets will be:

Rs. 62,500

Rs. 12,500

Rs. 10,000

Rs. 15,000

✅ Correct Option: 1

Current Ratio = Current Assets / Current Liabilities. Given ratio 2.5 and current liabilities Rs. 25,000, Current Assets = $2.5 \times 25{,}000 = 62{,}500$ .

2025: 22 May Shift 2

Match List-I with List-II:

List-I	List-II
(Ratio)	(Formula)
(A) Current ratio	(I) Market Price of a share/EPS
(B) Operating Margin Ratio	(II) Current Assets/Current Liabilities
(C) Return on Capital employed	(III) 100 - Operating Ratio
(D) Price earning ratio	(IV) Profit before interest and tax/Capital employed X 100

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Revenue from operations = 4,00,000 Average Inventory = 55,000 Gross Profit Ratio = 10%. Calculate Inventory turnover ratio-

2025: 27 May Shift 1

The two basic measures of liquidity are:

2022: 8 Aug Shift 2

A low stock turnover ratio indicates:

2022: 20 July Shift 1

Calculate Current Ratio from the following given information.

Liquid Ratio 0.75 : 1

Current Liabilities Rs. 1,80,000

Prepaid Expenses Rs. 20,000

Inventory Rs. 47,250

2025: 15 May Shift 2

To calculate interest coverage ratio; steps followed will be

Net Profit after tax Rs. 60,000; 12% Long-term debt 20,00,000; and Tax rate 40%.

(A) Calculate Net Profit before tax

(B) Divide Net Profit before Interest and Tax by Interest on long-term debt

(D) Calculate Interest on Long-term Debt

Choose the correct answer from the options given below:

Current ratio is 2.5, current liabilities Rs. 25,000, the amount of current assets will be:

Solution

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