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

Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as:

Liquidity Ratio

Solvency Ratio

Activity Ratio

Profitability Ratio

✅ Correct Option: 3

Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio measure how efficiently a company collects money from customers and pays its suppliers.

These ratios show how well a business manages its short-term assets and liabilities.

They fall under Activity Ratios because they assess the efficiency of operations.

So, the correct answer is: Option 3.

2026: 29 May Shift 2

__________ are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.

2022: 30 Aug Shift 2

What are the different types of liquidity ratios

A. Interest coverage ratio

B. Current ratio

C. Inventory turnover ratio

D. Gross profit ratio

E. Acid test ratio

Choose the correct answer from the options given below:

2025: 15 May Shift 2

The following ratios primarily measure risk:

(A) Liquidity

(B) Activity

(D) Profitability

Choose the correct answer from the options given below:

2023: 11 June Shift 3

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.

2025: 13 May Shift 1

Quick Assets of the firm are:

2025: 13 May Shift 1

Quick Ratio of the firm is:

Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as:

Solution

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