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CUET Accountancy 2023 PYQs11 June Shift 3. Free, no login required.

Financial Statements

past year questions, CUET Accountancy 2023 11 June Shift 3

Ratios

past year questions, Financial Statements, CUET Accountancy 2023 11 June Shift 3

Medium

What will be Interest Coverage Ratio, when 20% Long term Debt is Rs. 10,00,000, Tax Rate 40% and Net profit After Tax is Rs. 6,00,000.

Solution

✅ Correct Option: 3

Interest = 20 percent of 10,00,000 = 2,00,000.

Net Profit Before Tax = NPAT / (1 - Tax rate) = 6,00,000 / 0.60 = 10,00,000.

NPBIT = NPBT + Interest = 10,00,000 + 2,00,000 = 12,00,000.

Interest Coverage Ratio = NPBIT / Interest = 12,00,000 / 2,00,000 = 6 times.

Related questions:

2022: 8 Aug Shift 2

What is Gross Profit Ratio if?

Total sales Rs. 6,00,000

Sales returns Rs. 50,000

Cost of goods sold Rs. 4,40,000

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: 29 May Shift 2

The current ratio is 2 : 1. Which of the following transactions would improve, reduce or change the current ratio? Match List-I with List-II

LIST-ILIST-II
A.Payment of unclaimed dividendI.Improve
B.Purchase of Machinery against Issue of SharesII.Reduce
C.Sale of goods on creditIII.Will not be recorded
D.Purchased goods on creditIV.Does not Change

Choose the correct answer from the options given below:

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

2024

Calculate Trade Payables Turnover Ratio.

2026: 21 May Shift 1

Total Revenue from Operations Rs. 1,00,000

Total Purchases Rs. 75,000

Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be:

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