Financial Statements

Ratios

Easy

On the basis of information given below the closing Inventory will be

Opening inventory 20,000

average inventory 40,000

20,000

40,000

60,000

80,000

✅ Correct Option: 3

Given Information:

Opening Inventory = ₹20,000
Average Inventory = ₹40,000
Closing Inventory = ?

The formula for Average Inventory is:

$\text{Average Inventory} = \frac{\text{Opening Inventory + Closing Inventory}}{2}$

Substituting the given values:

$40,000 = \frac{20,000 + \text{Closing Inventory}}{2}$

Multiplying both sides by 2:

$80,000 = 20,000 + \text{Closing Inventory}$

$\text{Closing Inventory} = 80,000 - 20,000 = 60,000$

Therefore, the Closing Inventory is ₹60,000 (Option 3).

This makes logical sense as the average of 20,000 and 60,000 equals 40,000, confirming our answer.

2022: 23 Aug Shift 2

If there is Revenue from Operation Rs. 1,20,000 and gross profit is 20% of cost, then the amount of gross profit will be :

2022: 20 Aug Shift 2

X Ltd. has a Current Ration of 3.5 : 1 and Quick Ratio of 2 : 1. If excess of current assets over quick assets represented by inventories is Rs. 24,000. Calculate current liabilities.

2024

Calculate Trade Receivables Turnover Ratio.

2025: 14 May Shift 1

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

2025: 3 June Shift 1

Match List-I with List-II

List–I	List–II
(A) Profitability Ratios	(I) This refers to the ratios that are calculated for measuring the efficiency of operations of a business based on effective utilization of resources.
(B) Activity Ratios	(II) The ability of a business to pay the amount due to stakeholders as and when it is due.
(C) Liquidity Ratios	(III) The ability to meet its contractual obligations towards stakeholders, particularly towards external stakeholders.
(D) Solvency Ratios	(IV) It refers to the analysis of profits in relation to revenue from operations or funds (or assets) employed in the business.

Choose the correct answer from the options given below:

2025: 24 May Shift 1

A trader carries an average inventory of Rs. 60,000. His inventory turnover ratio is 12 times. If he sells goods at a profit of 20% on revenue from operations, find out the gross profit.

On the basis of information given below the closing Inventory will be Opening inventory 20,000 average inventory 40,000

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)

On the basis of information given below the closing Inventory will be

Opening inventory 20,000

average inventory 40,000