Financial Statements

Ratios

Easy

Financial Statements

Which of the following studies the frequency of conversion of inventory of finished goods into revenue from operations.

Trade receivable Turnover

Inventory Turnover

Fixed assets Turnover

Working capital Turnover

✅ Correct Option: 2

Inventory Turnover Ratio $=$ Cost of revenue from operations divided by average inventory. It measures how many times finished goods inventory is sold and replaced during the period.

2022: 20 July Shift 1

Calculate Current Ratio from the following given information.

Liquid Ratio 0.75 : 1

Current Liabilities Rs. 1,80,000

Prepaid Expenses Rs. 20,000

Inventory Rs. 47,250

2022: 8 Aug Shift 2

Collections from book debts:

2025: 15 May Shift 2

The following ratios primarily measure risk:

(A) Liquidity

(B) Activity

(D) Profitability

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Trade payable turnover ratio is-

2025: 22 May Shift 1

Which of the following are the objectives of Ratio Analysis?

(A) To know the areas of the business which need more attention.

(B) To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business.

(D) To provide information derived from financial statements useful for making projections and estimates for the future.

Choose the correct answer from the options given below:

2025: 22 May Shift 2

Match List-I with List-II:

List-I	List-II
(Ratio)	(Formula)
(A) Current ratio	(I) Market Price of a share/EPS
(B) Operating Margin Ratio	(II) Current Assets/Current Liabilities
(C) Return on Capital employed	(III) 100 - Operating Ratio
(D) Price earning ratio	(IV) Profit before interest and tax/Capital employed X 100

Choose the correct answer from the options given below:

Which of the following studies the frequency of conversion of inventory of finished goods into revenue from operations.

Solution

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