CUET Accountancy 2025 14 May Shift 2 PYQs

Higher turnover ratio means:

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

(C) Calculate Net profit before interest and tax

(D) Calculate Interest on Long-term Debt

Choose the correct answer from the options given below:

Which of the following statements are True about ratio analysis-

(A) A ratio reflects quantitative and qualitative aspects of results.

(B) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount

(C) A ratio is always expressed as a quotient of one number divided by another.

(D) Ratios help in comparisons of a firm's results over a number of accounting periods as well as with other business enterprises.

Choose the correct answer from the options given below: