Calculate Average Collection Period. Option 1: 30 days Option 2: 60 days Option 3: 45 days Option 4: 15 days

Answer: 45 days. Solution: The Average Collection Period is calculated as: Average Collection Period = 365/(Trade Receivables Turnover Ratio) = 365/8.18 = 44.62 days 45 days

Financial Statements

Ratios

Easy

Particulars	₹
Revenue from Operations	8,75,000
Creditors	90,000
Bills Receivable	48,000
Bills Payable	52,000
Purchases	4,20,000
Trade Debtors	59,000

Calculate Average Collection Period.

30 days

60 days

45 days

15 days

✅ Correct Option: 3

The Average Collection Period is calculated as:

$\text{Average Collection Period} = \frac{365}{\text{Trade Receivables Turnover Ratio}} = \frac{365}{8.18} = 44.62 \text{ days} \approx 45 \text{ days}$

2025: 4 June Shift 2

Liquid Ratio is also known as:

(A) Current Ratio

(B) Quick Ratio

(D) Working Capital Ratio

Choose the correct answer from the options given below:

2025: 3 June Shift 2

Compute Earning per share from following information

Net profit after tax but before dividend	1,75,000
Equity shares of Rs. 10 each	Rs. 7,00,000
Dividend declared @15%
Market price of a share	Rs.13

2023: 29 May Shift 2

Every company analyse its earning capacity of the business which is outcome of utilisation of resources employed in the business. To analyse profitability company can use:

A. Dividend Payout Ratio

B. Return on Net Worth

C. Gross Profit Ratio

D. Quick Ratio

E. Inventory Turnover Ratio

Choose the choose answer from the option given below:

2025: 22 May Shift 1

Given the following information:

Particulars	Amount (Rs.)
Revenue from Operations	3,40,000
Cost of Revenue from Operations	1,20,000
Selling expenses	80,000
Administrative Expenses	40,000

Calculate Operating ratio.

2026: 11 May Shift 2

The two basic measures of liquidity are:

2026: 6 June Shift 1

A trading firm's average inventory is Rs. 40,000. If the inventory turnover ratio is 6 times and the firm sells goods at a gross profit of 25% on sales, ascertain the gross profit of the firm.

Calculate Average Collection Period.

Solution

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