The ratio that includes whether investment in inventory is efficiently used or not a) Inventory turnover ratio b) Working capital turn over ratio c) Fixed asset turn over ratio d) Activity ratio

The ratio that includes whether investment in inventory is efficiently used or not a) Inventory turnover ratio
b) Working capital turn over ratio
c) Fixed asset turn over ratio
d) Activity ratio
by

1 Answer

Answer :

a) Inventory turnover ratio
by

Related questions

An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio

Description : An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio

Last Answer : c) Current ratio

Lower stock turnover ratio indicates------------------------------- a) Solvency position b) Monopoly situation c) Over investment in inventory d) None of these

Description : Lower stock turnover ratio indicates------------------------------- a) Solvency position b) Monopoly situation c) Over investment in inventory d) None of these

Last Answer : c) Over investment in inventory

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On a classified balance sheet, merchandise inventory is classified as a. an intangible asset. b. property, plant, and equipment. c. a current asset. d. a long-term investment.

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The relationship between total outside liabilities and total assets can be indicated through ------------ a) Fixed asset ratio b) Solvency ratio c) Fixed asset turn over ratio d) Proprietary ratio

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A firm’s investment in current asset is known as ---------------- a) Net working capital b) Gross working capital c) Average working capital d) None of these

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Last Answer : b) Increase in capital

Working capital is expressed as------ a) Current asset-fixed asset b) Fixed assets-current liabilities c) Current assets-current liabilities d) None of these

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Last Answer : c) Current assets-current liabilities

Net capital employed is equal to --------------- a) Total assets minus liabilities b) Fixed asset plus net working capital c) Total asset minus long-term liabilities d) Total assets

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Equity includes -------------- a) Equity share capital b) Equity share capital+Preference share capital+-fictitious asset c) Equity capital+Prefernce share capital+reserves snd surplus-fictious asset d) Equity capital+Preference share capital

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Last Answer : c) Equity capital+Prefernce share capital+reserves snd surplus-fictious asset

Current ratio is an example of -------------------- a) Leverage ratio b) Liquidity ratio c) Activity ratio d) Turnover ratio

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Last Answer : b) Liquidity ratio

Purchase of fixed asset is classified as------activity a) financing b) investing c) operating d) others

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Last Answer : a) Gross working capital

he ratio of current asset to currnt liability is known as -------------- a) Liquid ratio b) Current ratio c) Absolute liquid ratio d) Turn over ratio

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Pick out the wrong statement. (A) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes (B) A cost index is merely a number for a given year showing the cost at that time relative to a certain base year (C) Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment (D) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

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Proprietary ratio measures the relationship between share holder fund and ------------------ a) Total asset b) Fixed asset c) Current asset d) Fictious asset

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Current liabilities are equals to------------------------------- a) Working capital +current assets b) Working capital-current assets c) Current assets-working capital d) Current asset + working capital

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Which one of the following ratios is likely to be affected the most on account of price level changes ? (A) Current Ratio (B) Inventory Turnover Ratio (C) Debtors’ Turnover Ratio (D) Fixed Assets Turnover Ratio

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Accounting question: is it a fixed asset if multiple items total over $500?

Description : Accounting question: is it a fixed asset if multiple items total over $500?

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The return on capital employed shows the combined effect of– (A) net profit ratio and inventory turnover ratio (B) operating ratio and net profit ratio (C) net profit ratio and capital turnover ratio (D) gross profit ratio and capital turnover ratio

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Stock turn over ratio is an example of ------------------- a) Liquidity ratio b) Leverage ratio c) Profitability ratios d) Activity ratios

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For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times

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Last Answer : (a) 8 times

Debtors turnover ratio measures---------- a) Short term solvency b) Operating efficiency c) Long term solvency d) Credit policy

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Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability

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Last Answer : c) Efficiency

Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio

Description : Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio

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Debtors turnover ratio also known as---------- a) Payable turnover b) Receivable turnover ratio c) Creators turnover ratio d) Debtors velocity

Description : Debtors turnover ratio also known as---------- a) Payable turnover b) Receivable turnover ratio c) Creators turnover ratio d) Debtors velocity

Last Answer : b) Receivable turnover ratio

Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio

Description : Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio

Last Answer : d) Solvency ratio

Following is not a fixed asset - (A) Goodwill (B) Loose Tools (C) Copyright (D) Livestock

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Last Answer : B) Loose Tools

Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Last Answer : (B) Rs. 4,00,000

Which of the following is not an inflow of cash a) Sale of fixed asset b) Issue of debentures for cash c) Funds from operation d) Acquisition of assets

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Stock and prepaid expanses are not included in ---------------- a) Current asset b) Fixed asset c) Current liability d) Quick asset

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The asset, the amount of which can be realized within a period of one year are known as ---------------- a) Current liability b) Current asset c) Liquid liability d) Fixed asset

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Last Answer : b) Current asset

With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a triangular relationship in the sense that ROI = Profit margin ×Asset turnover (C) It is a superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA

Description : With regard to the rate of return on investment (ROI), which one of the following statements is not valid ? (A) It is an overall indicator of the profitability of an enterprise (B) It is a ... superior measure compared to the cash flow generated per share (D) It was first developed by Dupont, USA

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Fund flow refers to change in----- a) Working capital b) Fixed capital c) Current capital d) Increase in working capital

Description : Fund flow refers to change in----- a) Working capital b) Fixed capital c) Current capital d) Increase in working capital

Last Answer : c) Current capital

The ratio of liquid asset to current liabilities a) Quick ratio b) Current ratio c) Absolute liquid ratio d) Combined ratio

Description : The ratio of liquid asset to current liabilities a) Quick ratio b) Current ratio c) Absolute liquid ratio d) Combined ratio

Last Answer : a) Quick ratio

The primary source of revenue for a wholesaler is a. investment income. b. service fees. c. the sale of merchandise. d. the sale of fixed assets the company owns.

Description : The primary source of revenue for a wholesaler is a. investment income. b. service fees. c. the sale of merchandise. d. the sale of fixed assets the company owns.

Last Answer : c. the sale of merchandise.

A segment of activity or area of operation for which revenues are accumulated is known as ------ a) Cost centre b) Profit centre c) Revenue centre d) Investment centre

Description : A segment of activity or area of operation for which revenues are accumulated is known as ------ a) Cost centre b) Profit centre c) Revenue centre d) Investment centre

Last Answer : c) Revenue centre

A segment of activity or area of operation for which cost is collected is known as ----------------- a) Cost centre b) Profit centre c) Investment centre d) Responsibility centre

Description : A segment of activity or area of operation for which cost is collected is known as ----------------- a) Cost centre b) Profit centre c) Investment centre d) Responsibility centre

Last Answer : a) Cost centre

A segment of activity for which revenues are accumulated a) investment centre b) profit centre c) revenue centre d) Responsibility

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A segment of activity for which both revenue and cost are accumulated a) Investment centre b) Project centre c) Cost centre d) Responsibility centre

Description : A segment of activity for which both revenue and cost are accumulated a) Investment centre b) Project centre c) Cost centre d) Responsibility centre

Last Answer : b) Project centre

A segment of activity for which cost is accumulated a) Service centre b) Cost centre c) Profit centre d) Investment centre

Description : A segment of activity for which cost is accumulated a) Service centre b) Cost centre c) Profit centre d) Investment centre

Last Answer : b) Cost centre

Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is -------- a) Rs.53,000 b) Rs.50,000 c) Rs.47,000 d) Rs.48,000

Description : Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is -------- a) Rs.53,000 b) Rs.50,000 c) Rs.47,000 d) Rs.48,000

Last Answer : c) Rs.47,000