Financial Statements

Ratios

Easy

Financial Statements

Match List-I with List-II

List-I List-II
(A) Inventories at the end and other current assets such as prepaid expenses, advance tax, etc. are not included in (I) Advantage of Ratio Analysis
(B) Identification of problem areas (II) Quick Assets
(C) Ratios are means to an end rather than the end by itself (III) Current Ratio
(D) 2:1 is the benchmark of (IV) Limitation of the ratios

Choose the correct answer from the options given below:

List-I	List-II
(A) Inventories at the end and other current assets such as prepaid expenses, advance tax, etc. are not included in	(I) Advantage of Ratio Analysis
(B) Identification of problem areas	(II) Quick Assets
(C) Ratios are means to an end rather than the end by itself	(III) Current Ratio
(D) 2:1 is the benchmark of	(IV) Limitation of the ratios

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

✅ Correct Option: 4

Quick assets exclude closing inventory and other current assets such as prepaid expenses and advance tax (II). Pinpointing problem areas is an advantage of ratio analysis (I). The reminder that ratios are only a means and not an end reflects their limitation (IV). The 2:1 benchmark is the conventional standard for the current ratio (III).

2022: 20 July Shift 1

Match List - I with List - II

List - I	List - II
(a) Working Capital Turnover Ratio	(i) $\frac{\text{Quick Assets}}{\text{Current liabilities}}$
(b) Acid Test Ratio	(ii) $\frac{\text{Operating Profit}}{\text{Rev. from operations}} \times 100$
(c) Operating Profit Ratio	(iii) $\frac{\text{Revenue from operation}}{\text{Working capital}}$
(d) Trade Payables Turnover Ratio	(iv) $\frac{\text{Net Credit Revenue from operation}}{\text{Average Trade payables}}$

Choose the correct answer from the options given below :

2025: 13 May Shift 1

If, Total assets = Rs. 3,00,000

Non-current liabilities = Rs. 80,000

Shareholders fund = Rs. 2,00,000

Non-current assets:

Fixed assets = Rs. 1,60,000

Non-current investments = Rs. 1,00,000.

Then, Current Ratio is:

2025: 13 May Shift 1

Quick Ratio of the firm is:

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Liquidity Ratio(s)	I.	Measure long term financial stability
B.	Solvency Ratio(s)	II.	Measure to analyse the earning capacity
C.	Profitability Ratio(s)	III.	Measure ability to pay short-term obligation
D.	Activity Ratio (s)	IV.	Measure utilisation of resources

Choose the correct answer from the options given below:

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:

2023: 28 May Shift 1

Net Capital Employed is equal to :

(A) Fixed Assets + Current Assets - Long term liabilities

(B) Non current Assets + Current Assets - Current liabilities

(D) Equity + Debt

(E) Current Assets - Current liabilities

Choose the correct answer from the options given below :

Solution

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