Financial Statements

Ratios

Medium

Financial Statements

Revenue from Operations: Cash Rs. 25,000 and Credit Rs. 75,000

Purchases : Cash Rs. 15,000 and Credit Rs. 60,000

Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be:

20%

15%

11.11%

10%

✅ Correct Option: 4

Revenue from operations $= 25,000 + 75,000 = 1,00,000$ . Net purchases $= 75,000 - 2,000 = 73,000$ . Cost of revenue $= 73,000 + 2,000$ carriage $+ 5,000$ wages $+ 10,000$ decrease in inventory $= 90,000$ . Salaries are indirect and excluded. Gross profit $= 10,000$ , ratio $= 10$ per cent.

2022: 20 Aug Shift 2

Operating Profit Ratio of XYZ Ltd. is 60%. The operating ratio of XYZ Ltd. is:

2022: 8 Aug Shift 2

What is gross profit ratio?

Gross sales Rs. 7,60,000

Sales returns Rs. 40,000

Net Profit after interest Rs. 40,000

Indirect expenses Rs. 60,000

Interest paid on debentures Rs. 20,000

2026: 29 May Shift 2

The current ratio is 2 : 1. Which of the following transactions would improve, reduce or change the current ratio? Match List-I with List-II

LIST-I		LIST-II
A.	Payment of unclaimed dividend	I.	Improve
B.	Purchase of Machinery against Issue of Shares	II.	Reduce
C.	Sale of goods on credit	III.	Will not be recorded
D.	Purchased goods on credit	IV.	Does not Change

Choose the correct answer from the options given below:

2026: 6 June Shift 1

A trading firm's average inventory is Rs. 40,000. If the inventory turnover ratio is 6 times and the firm sells goods at a gross profit of 25% on sales, ascertain the gross profit of the firm.

2026: 11 May Shift 2

The two basic measures of liquidity are:

2022: 23 Aug Shift 2

The ideal Debt Equity Ratio is :

Revenue from Operations: Cash Rs. 25,000 and Credit Rs. 75,000 Purchases : Cash Rs. 15,000 and Credit Rs. 60,000 Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be:

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)

Revenue from Operations: Cash Rs. 25,000 and Credit Rs. 75,000

Purchases : Cash Rs. 15,000 and Credit Rs. 60,000

Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be: