CUET Accountancy Financial Statements > Ratios PYQs

Higher turnover ratio means:

Liquid Ratio is also known as: (A) Current Ratio (B) Quick Ratio (C) Acid- Test Ratio (D) Working Capital Ratio Choose the correct answer from the options given below:

Calculate Gross profit ratio from following info | Revenue from operations | 3,40,000 | |---|---| | Cost of revenue from operations | 1,20,000 |

To assess the long term solvency of the business, which of the following ratios are needed? (A) Interest coverage ratio (B) Proprietary ratio (C) Acid test ratio (D) Debt to capital employed ratio Choose the correct answer from the options given below:

Compute Earning per share from following information | Net profit after tax but before dividend | 1,75,000 | |---|---| | Equity shares of Rs. 10 each | Rs. 7,00,000 | | Dividend declared @15% | | | Market price of a share | Rs.13 |

Match List-I with List-II | List-I | List-II | |---|---| | (A) Measure of liquidity | (I) Return on capital employed | | (B) Measure of earning capacity | (II) Inventory turnover ratio | | (C) Measure of activity of firm's inventory | (III) Profitability ratio | | (D) Measure of Productive efficiency of funds | (IV) Current ratio | Choose the correct answer from the options given below:

The current ratio is 2:1 The impact of goods purchased on credit will

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:

Operating expense ratio is

The main advantage of ratio analysis is.

The two basic measures of liquidity are:

Calculate the Current Ratio from the following information: | Particulars | (Rs.) | |---|---| | Inventories | 50,000 | | Trade receivables | 50,000 | | Advance tax | 4,000 | | Cash and cash equivalant | 30,000 | | Trade payables | 1,00,000 | | Short-term borrowings (bank overdraft) | 4,000 |

Match List-I with List-II | List-I | List-II | |---|---| | (A). Liquidity Ratio | (I). Receivable Turnover Ratio | | (B). Solvency Ratio | (II). Quick Ratio | | (C). Activity (or Turnover) Ratio | (III). Earning Per Share Ratio | | (D). Profitability Ratio | (IV). Debt to Equity Ratio | Choose the correct answer from the options given below:

Which technique is used to assess profitability, solvency and efficiency of an enterprise through the technique of ratio analysis?

The current ratio of a firm is 2:1 and quick ratio is 1:1. If liabilities are Rs1,00,000 then find the value of working capital.

Calculate 'Liquid Ratio' from the following information: | Current liabilities | Rs. 50,000 | |---|---| | Current assets | Rs. 80,000 | | Inventories | Rs. 20,000 | | Advance tax | Rs. 5,000 | | Prepaid expenses | Rs. 5,000 |

The two basic measures of liquidity are:

Which of the following ratios is considered as the solvency ratio?

Revenue from operations = 4,00,000 Average Inventory = 55,000 Gross Profit Ratio = 10%. Calculate Inventory turnover ratio-

The ________ ratios are primarily measures of return-

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.

The ideal quick ratio is

The standard Debt-Equity ratio is

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:

Profit after tax and interest is Rs 1,60,000. Tax rate is 20% 10% long term borrowing is Rs 20,00,000 Find profit before tax and after interest

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. (C) To know about the potential areas which can be improved with the effort in the desired direction. (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:

Given the following information: | Particulars | Amount (Rs.) | |---|---| | Revenue from Operations | 3,40,000 | | Cost of Revenue from Operations | 1,20,000 | | Selling expenses | 80,000 | | Administrative Expenses | 40,000 | Calculate Operating ratio.

Which of the following is not a profitability ratio?

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:

The following ratios primarily measure risk: (A) Liquidity (B) Activity (C) Debts (D) Profitability Choose the correct answer from the options given below:

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

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 (C) Calculate Net profit before interest and tax (D) Calculate Interest on Long-term Debt Choose the correct answer from the options given below:

Gross profit ratio of a company was 25%, its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company was Rs. 50,000. Calculate its net profit.

Match List-I with List-II | List-I | List-II | |---|---| | Accounting ratio | Type of accounting ratio | | (A) Current ratio | (I) Liquidity ratios | | (B) Stock turnover ratio | (II) Activity ratios | | (C) Debt Equity ratio | (III) Solvency ratios | | (D) Operating ratio | (IV) Profitability ratios | Choose the correct answer from the options given below:

A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the gross profit.

X Ltd. has a current ratio of 3:1 and quick ratio of 2:1. If excess of current assets over quick assets, represented by inventories is Rs. 5,000, calculate current assets and quick assets.

The _________ may indicate that the firm is experiencing stockouts and lost sales.

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

Which of the following statements are True about ratio analysis- (A) A ratio reflects quantitative and qualitative aspects of results. (B) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount (C) A ratio is always expressed as a quotient of one number divided by another. (D) Ratios help in comparisons of a firm's results over a number of accounting periods as well as with other business enterprises. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Liquidity Ratio | (I) Trade payable Turnover Ratio | | (B) Solvency Ratio | (II) Quick Ratio | | (C) Activity Ratio | (III) Proprietary Ratio | | (D) Profitability Ratio | (IV) Price earning ratio | Choose the correct answer from the options given below:

The current ratio is 2.5 : 1. Current assets are Rs. 50,000 and current liabilities are Rs. 20,000. How much must be the reduction in the current assets to bring the ratio to 2 : 1

Calulate Current Ratio from the following information: | Particulars (Rs.) | Amount (in Rs) | |---|---| | Inventories | 60,000 | | Trade receivables | 60,000 | | Advance tax | 4,000 | | Cash and cash equivalents | 50,000 | | Trade payables | 1,30,000 | | Bank Overdraft | 4,000 |

Match List-I with List-II | List-I | List-II | |---|---| | (A) Liquidity Ratios | (I) Debt to Capital Employed Ratio | | (B) Solvency Ratios | (II) Net profit ratio | | (C) Activity Ratios | (III) Current Ratio | | (D) Profitability Ratios | (IV) Working capital Turnover Ratio | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Liquidity Ratio | (I) Inventory Turnover ratio | | (B) Solvency Ratio | (II) Quick Ratio | | (C) Activity (or Turnover) Ratio | (III) Price earning ratio | | (D) Profitability Ratio | (IV) Total asset to debt ratio | Choose the correct answer from the options given below:

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:

Match List I with List II | LIST I | LIST II | |---|---| | A. Operating Profit Ratio | I. Solvency Ratios | | B. Working Capital Turnover Ratio | II. Liquidity Ratios | | C. Debt-Equity Ratio | III. Activity Ratios | | D. Quick Ratio | IV. Profitability Ratios | Choose the correct answer from the options given below:

Identify the other name by which Liquid ratio is known :

What will be Interest Coverage Ratio, when 20% Long term Debt is Rs. 10,00,000, Tax Rate 40% and Net profit After Tax is Rs. 6,00,000.

Every company analyse its earning capacity of the business which is outcome of utilisation of resources employed in the business. To analyse profitability company can use: A. Dividend Payout Ratio B. Return on Net Worth C. Gross Profit Ratio D. Quick Ratio E. Inventory Turnover Ratio Choose the choose answer from the option given below:

Identify the ratio which is not computed for evaluating solvency of the business.

Match List - I with List - II. | List - I | List - II | |----------|-----------| | (A) Current Ratio | (I) Solvency Ratios | | (B) Inventory Turnover Ratio | (II) Liquidity Ratios | | (C) Return on Investment | (III) Profitability Ratios | | (D) Proprietory Ratio | (IV) Activity Ratios | Choose the correct answer from the options given below :

Aradya Ltd. had debt equity ratio of 2.5 : 1. State which of the following transaction will not effect the Debt Equity Ratio :

Net Capital Employed is equal to : (A) Fixed Assets + Current Assets - Long term liabilities (B) Non current Assets + Current Assets - Current liabilities (C) Fixed Assets + Current Assets - Equity (D) Equity + Debt (E) Current Assets - Current liabilities Choose the correct answer from the options given below :

What are the different types of liquidity ratios A. Interest coverage ratio B. Current ratio C. Inventory turnover ratio D. Gross profit ratio E. Acid test ratio Choose the correct answer from the options given below:

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 :

The ideal Debt Equity Ratio is :

For calculating EPS, the following order will be followed. (A) Calculate number of equity shares (B) Calculate earning available for equity share holders (C) Compute profit after tax (D) Compute EPS Choose the correct answer from the options given below :

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

Earning Capacity of a Company is measured by:

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.

Match List I with List II | List I | List II | | --- | --- | | A. Liquidity Ratio | I. Proprietary Ratio | | B. Solvency Ratio | II. Current Ratio | | C. Activity Ratio | III. Earning per Share | | D. Profitability ratio | IV. Current assets turnover ratio | Choose the correct answer from the options given below:

Which one of the following statements is true?

Current ratio is 2.5, current liabilities Rs. 25,000, the amount of current assets will be:

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

When the ratio is low, the firm is said to have favourable indication.

Debt-equity ratio is a sub-part of:

What is Gross Profit Ratio if? Total sales Rs. 6,00,000 Sales returns Rs. 50,000 Cost of goods sold Rs. 4,40,000

A low stock turnover ratio indicates:

Long-term solvency is indicated by:

Collections from book debts:

Which one higher ratio is not favourable?

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 :

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

Make the right combination of the ratios that enables to find the short term liquidity. (a) Return on Equity (b) Acid Test Ratio (c) Current Ratio (d) Sacrificing Ratio (e) Inventory Turnover Ratio Choose the most appropriate answer from the options given below :

If there are Fixed assets of Rs.10,00,00 Current assets of Rs.6,00,000, Current liabilities of Rs.3,00,000 and Net profit before Interest and Tax of Rs.2,60,000; then Return on Investment will be:

Make the right combination of the ratios that enables to find the short term liquidity A. Return on Equity B. Acid Test Ratio C. Sacrificing Ratio D. Inventory Turnover Ratio E. Current Ratio Choose the correct answer from the options given below:

Which of the following ratios is not a profitability ratio?

Match List I with List II | List I | List II | |---|---| | A. Debt Equity Ratio | I. Primarily indicates the rate of external funds in financing assets. | | B. Total assets to Debt ratio | II. Higher proportion provides security to creditors | | C. Proprietary ratio | III. It reveals the efficiency of business in utilization of funds | | D. Return on Investment | IV. It measures degree of indebtness of an enterprise | Choose the correct answer from the options given below:

Which of the following transaction will increase Current Ratio but will decrease Debt Equity Ratio?

The ratios calculated to measure the short term commitments of business is