Financial Statements

Ratios

Easy

Financial Statements

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

Shareholders

Customers

Lenders and Suppliers

Borrowers and Buyers

✅ Correct Option: 3

The average payment period shows how long the firm takes to settle its dues. Those who extend credit to the firm, namely lenders and suppliers, watch it closely because it indicates the firm's promptness in paying bills and hence its creditworthiness.

2025: 16 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Liquidity Ratio	(I) Interest Coverage Ratio
(B) Profitability Ratio	(II) Acid-Test Ratio
(C) Solvency Ratio	(III) Fixed Assets Turnover Ratio
(D) Activity ratios	(IV) Return on Capital Employed Ratio

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Average payment period is -

2026: 13 May Shift 1

Match List-I with List-II

List-I (ACCOUNTING RATIO)	List-II (CATEGORY)
(A) Total Assets to Debt Ratio	(I) Profitability Ratio
(B) Investment (Net assets) Turnover Ratio	(II) Solvency Ratio
(C) Acid-Test Ratio	(III) Activity Ratio
(D) Return on Investment	(IV) Liquidity Ratio

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Trade payable turnover ratio is-

2025: 15 May Shift 2

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

(D) Calculate Interest on Long-term Debt

Choose the correct answer from the options given below:

2025: 14 May Shift 2

EPS ( Earning per share)-

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

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)