Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as: Option 1: Liquidity Ratio Option 2: Solvency Ratio Option 3: Activity Ratio Option 4: Profitability Ratio

The answer is 'Activity Ratio'. View full solution:

CUET Accountancy - Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as: | PYQs + Solutions

CUET Accountancy

Financial Statements

Easy

Liquidity Ratio

Solvency Ratio

Activity Ratio

Profitability Ratio

✅ Correct Option: 3

Related questions:

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:

13 May Shift 1

If, Total assets = Rs. 3,00,000

Non-current liabilities = Rs. 80,000

Shareholders fund = Rs. 2,00,000

Non-current assets:

Fixed assets = Rs. 1,60,000

Non-current investments = Rs. 1,00,000.

Then, Current Ratio is:

30 May Shift 2

Calculate the Current Ratio from the following information:

Particulars	(Rs.)
Inventories	50,000
Trade receivables	50,000
Advance tax	4,000
Cash and cash equivalant	30,000
Trade payables	1,00,000
Short-term borrowings (bank overdraft)	4,000