Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio

Income statement ratios are also called -----------
a) Operating ratio
b) Liquidity ratio
c) Activity ratio
d) Trend ratio
by

1 Answer

Answer :

a) Operating ratio
by

Related questions

The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Description : The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Last Answer : c) Liquidity ratio

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

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

Last Answer : d) Activity ratios

The ratio that highlight the end result of business activities are known as ---------------- ratios a) Liquidity b) Leverage c) Activity d) Profitability

Description : The ratio that highlight the end result of business activities are known as ---------------- ratios a) Liquidity b) Leverage c) Activity d) Profitability

Last Answer : d) Profitability

Leverage ratios are also known as -------------- ratios a) Short term solvency ratios b) Long term solvency ratios c) Solvency ratio d) Liquidity ratio

Description : Leverage ratios are also known as -------------- ratios a) Short term solvency ratios b) Long term solvency ratios c) Solvency ratio d) Liquidity ratio

Last Answer : b) Long term solvency ratios

Debt equity ratio is an example of ---------------- ratios a) Balance sheet ratio b) Profit & loss account ratio c) Mixed ratio d) Liquidity ratio

Description : Debt equity ratio is an example of ---------------- ratios a) Balance sheet ratio b) Profit & loss account ratio c) Mixed ratio d) Liquidity ratio

Last Answer : a) Balance sheet ratio

Example of activity ratios ------------------------ a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Stock turn over ratio

Description : Example of activity ratios ------------------------ a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Stock turn over ratio

Last Answer : d) Stock turn over ratio

Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Description : Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Last Answer : d) Ratio analysis

Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Last Answer : b) Short term

he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Description : he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Last Answer : a) Debt equity ratio

---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Description : ---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Last Answer : d) Leverage

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

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

Last Answer : b) Liquidity ratio

The efficiency of the management can be measured with the help of ------------------ a) Activity ratio b) Leverage ratio c) Liquidity ratio d) Profitability ratio

Description : The efficiency of the management can be measured with the help of ------------------ a) Activity ratio b) Leverage ratio c) Liquidity ratio d) Profitability ratio

Last Answer : a) Activity ratio

The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ a) Net profit ratio b) Gross profit ratio c) Current ratio d) Liquid ratios

Description : The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ a) Net profit ratio b) Gross profit ratio c) Current ratio d) Liquid ratios

Last Answer : b) Gross profit ratio

Expressed as a percentage of each asset to total a) Common size P/L A/C b) Common size Balance Sheet c) Comparative Income Statement d) Trend analysis

Description : Expressed as a percentage of each asset to total a) Common size P/L A/C b) Common size Balance Sheet c) Comparative Income Statement d) Trend analysis

Last Answer : b) Common size Balance Sheet

Study of the trend of the same items of two or more balance sheets a) Common size Profit and Loss A/C b) Common size balance sheet c) Comparative Income statement d) Comparative Balance Sheet

Description : Study of the trend of the same items of two or more balance sheets a) Common size Profit and Loss A/C b) Common size balance sheet c) Comparative Income statement d) Comparative Balance Sheet

Last Answer : Common size balance sheet

---------------- establishes the relationship of different individual items which same common items a) Common size statements b) Comparative statements c) Trend analysis d) Comparative Income Statement

Description : ---------------- establishes the relationship of different individual items which same common items a) Common size statements b) Comparative statements c) Trend analysis d) Comparative Income Statement

Last Answer : a) Common size statements

Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability

Description : Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability

Last Answer : a) solvency

Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation

Description : Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation

Last Answer : b) Ratio analysis

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

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

Last Answer : a) efficiency

Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Description : Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth

Last Answer : c) Market strength

Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit

Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit

Last Answer : b) The working capital position

By computing current ratio ---------------- solvency of a concern is assessed a) Short term b) Long term c) Liquidity d) Profitability

Description : By computing current ratio ---------------- solvency of a concern is assessed a) Short term b) Long term c) Liquidity d) Profitability

Last Answer : a) Short term

Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios

Description : Ratio to assess the short term debt paying capacity of a firm is---------- a) Debt equity ratio b) Propriety ratio c) Liquid ratio d) Solvency ratios

Last Answer : c) Liquid ratio

Liquidity ratios are expressed in A. Pure ratio form B. Percentage C. Rate or time D. None of the above

Description : Liquidity ratios are expressed in A. Pure ratio form B. Percentage C. Rate or time D. None of the above

Last Answer : A. Pure ratio form

The relationship between two amount or variables is measured with the help of ------------ a) Ratio b) Trend c) Comparative d) Common size

Description : The relationship between two amount or variables is measured with the help of ------------ a) Ratio b) Trend c) Comparative d) Common size

Last Answer : a) Ratio

Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis

Description : Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis

Last Answer : c) Ratio analysis

Which of the following is not a true statement about a multiple-step income statement? a. Operating expenses are often classified as selling and administrative expenses. b. There may be a section for nonoperating activities. c. There may be a section for operating assets. d. There is a section for cost of goods sold.

Description : Which of the following is not a true statement about a multiple-step income statement? a. Operating expenses are often classified as selling and administrative expenses. b. There may be a section for nonoperating ... be a section for operating assets. d. There is a section for cost of goods sold.

Last Answer : c. There may be a section for operating assets.

Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Description : Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Last Answer : b. Operating expenses

The operating expense section of an income statement for a wholesaler would not include a. freight-out. b. utilities expense. c. cost of goods sold. d. insurance expense

Description : The operating expense section of an income statement for a wholesaler would not include a. freight-out. b. utilities expense. c. cost of goods sold. d. insurance expense

Last Answer : d. insurance expense

With respect to the income statement, a. contra-revenue accounts do not appear on the income statement. b. sales discounts increase the amount of sales. c. contra-revenue accounts increase the amount of operating expenses. d. sales discounts are included in the calculation of gross profit.

Description : With respect to the income statement, a. contra-revenue accounts do not appear on the income statement. b. sales discounts increase the amount of sales. c. contra-revenue accounts increase the amount of operating expenses. d. sales discounts are included in the calculation of gross profit.

Last Answer : d. sales discounts are included in the calculation of gross profit.

In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Description : In terms of liquidity, merchandise inventory is a. more liquid than cash. b. more liquid than accounts receivable. c. more liquid than prepaid expenses. d. less liquid than store equipment.

Last Answer : c. more liquid than prepaid expenses.

The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.

Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.

Last Answer : b. liquidity.

On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.

Description : On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.

Last Answer : c. in the order of liquidity.

Ratios may be used as a measure of ------------- a) Effiency b) Solvency c) Profitability d) None of the above

Description : Ratios may be used as a measure of ------------- a) Effiency b) Solvency c) Profitability d) None of the above

Last Answer : a) Effiency

Ratios help the management in evolving market strategies through ----------- a) Inter firm comparison b) Intra firm comparison c) Ratios d) None of the above

Description : Ratios help the management in evolving market strategies through ----------- a) Inter firm comparison b) Intra firm comparison c) Ratios d) None of the above

Last Answer : a) Inter firm comparison

Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Description : Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Last Answer : a) Forecasting

When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Description : When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Last Answer : b) Vertiacal analysis

Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Rent received by a company (whose main business is real estate) is classified as a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Sale of patent is classified under--------- a) Investing activity b) Financing activity c) Operating activity d) None of these

Description : Sale of patent is classified under--------- a) Investing activity b) Financing activity c) Operating activity d) None of these

Last Answer : c) Operating activity

Profit on sale of machinery comes under------------ a) Investing activity b) Financing activity c) Operating activity d) None of these

Description : Profit on sale of machinery comes under------------ a) Investing activity b) Financing activity c) Operating activity d) None of these

Last Answer : c) Operating activity

Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Description : Proposed dividend is classified as----------- a) Investing activity b) Financing activity c) Operating activity d) Cash equivalent

Last Answer : c) Operating activity

Dividend paid under AS- 3 is---------- a) Cash flow from financing activity b) Cash flow from operating activity c) Cash flow from investing activity d) None of these

Description : Dividend paid under AS- 3 is---------- a) Cash flow from financing activity b) Cash flow from operating activity c) Cash flow from investing activity d) None of these

Last Answer : c) Cash flow from investing activity

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

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

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

Provision for tax is shown as a part of-----------activity a) financing b) investing c) operating d) others

Description : Provision for tax is shown as a part of-----------activity a) financing b) investing c) operating d) others

Last Answer : c) operating

________ is characteristic of liquidity ratios. (a) Organization’s ability to meet its current debt obligations (b) Organization’s use of debt to finance its assets and whether it’s able to meet the interest payments on the debt ;(c) How efficiently the firm is using its assets ;(d) None of given options

Description : ________ is characteristic of liquidity ratios. (a) Organization's ability to meet its current debt obligations (b) Organization's use of debt to finance its assets and whether it's able to meet the interest ... the debt ;(c) How efficiently the firm is using its assets ;(d) None of given options

Last Answer : (a) Organization’s ability to meet its current debt obligations 

In trend percentage the base year is ---------------------------- a) The first year b) Last year c) Any year d) Second year

Description : In trend percentage the base year is ---------------------------- a) The first year b) Last year c) Any year d) Second year

Last Answer : a) The first year

Trend analysis is significant for a) Forecasting and budgeting b) Profit planning c) Capital rationing d) None of the above

Description : Trend analysis is significant for a) Forecasting and budgeting b) Profit planning c) Capital rationing d) None of the above

Last Answer : a) Forecasting and budgeting

Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above

Description : Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above

Last Answer : c) Trend analysis

Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold

Description : Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold

Last Answer : c. cost of goods sold, net sales revenue

Sal’s operating income for the month of August, 2008 is a. $30,000. b. $19,500. c. $18,500. d. $16,000.

Description : Sal’s operating income for the month of August, 2008 is a. $30,000. b. $19,500. c. $18,500. d. $16,000.

Last Answer : b. $19,500.