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
Description : Example of leverage ratio a) Debtors velocity b) Stock turnover ratio c) Current ratio d) Solvency ratio
Last Answer : d) Solvency ratio
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
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
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
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
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
Description : Debtors turnover ratio is used to calculate------ a) efficiency b) solvency c) liquidity d) profitability
Last Answer : a) efficiency
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
Description : Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio
Last Answer : a) Operating ratio
Description : 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
Last Answer : a) Inventory turnover ratio
Description : Dividend yield is an example for------ratio a) Solvency b) Liquidity c) Market strength d) Net worth
Last Answer : c) Market strength
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
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
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
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
Description : 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 ... Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times
Last Answer : (a) 8 times
Description : Debtors turnover ratio measures---------- a) Short term solvency b) Operating efficiency c) Long term solvency d) Credit policy
Last Answer : a) Short term solvency
Description : Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability b) Liquidity& solvency c) Efficiency d) Growth
Last Answer : c) Efficiency
Description : Debt equity ratio is a-------------------------------------- a) Profitability ratio b) Turnover ratio c) Short term solvency ratio d) Long term solvency ratio
Last Answer : d) Long term solvency ratio
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
Description : The ratio which indicates how quickly debtors are converted into cash is--------- a) Receivable turnover ratio b) Inventory turnover ratio c) Working capital turnover ratio d) Creditors turnover ratio
Last Answer : a) Receivable turnover ratio
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
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.
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.
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
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.
Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others
Last Answer : b) Short term
Description : Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%
Last Answer : (a) 4.55%
Description : Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%
Last Answer : (b) 1.82%
Description : Calculate workers recruited and joined from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80
Last Answer : (a) 112
Description : Calculate workers left and discharged from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80 (c) 48 (d) 64
Last Answer : (c) 48
Description : Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs
Last Answer : (c) Both of the above
Description : Which of the following is not an avoidable cause of labour turnover: (a) Dissatisfaction with Job (b) Lack of training facilities (c) Low wages and allowances (d) Disability, making a worker unfit for work
Last Answer : (d) Disability, making a worker unfit for work
Description : Labour turnover means: (a) Turnover generated by labour (b) Rate of change in composition of labour force during a specified period (c) Either of the above (d) Both of the above
Last Answer : (b) Rate of change in composition of labour force during a specified period
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
Description : Which one of the following statements is correct ? When creditors' velocity or creditors' turnover is higher as compared to debtors' velocity, it would (A) improve liquidity (B) reduce liquidity (C) have no effect on liquidity (D) improve financial position
Last Answer : Answer: have no effect on liquidity
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
Description : Solvency ratio indicates----------------- a) Credit worthiness b) Activity c) Profitability d) None of these
Last Answer : a) Credit worthiness
Description : _________ is also known as working capital ratio. (a) Current ratio (b) Quick ratio ((c) Liquid ratio (d) Debt-equity ratio
Last Answer : (a) Current ratio
Description : Current ratio is 4:1, the amount of current liabilities is Rs.12000 the amount of working capital is----- a) Rs.48,000 b) Rs.36000 c) Rs.30000 d) Rs.60000
Last Answer : a) Rs.48,000
Description : Collection of book debts----- a) Has no effect on current ratio b) Has decreased in current ratio c) Has increased in current ratio d) None of these
Last Answer : a) Has no effect on current ratio
Description : Proprietary ratio measures the relationship between share holder fund and ------------------ a) Total asset b) Fixed asset c) Current asset d) Fictious asset
Last Answer : a) Total asset
Description : The ideal current ratio is ------------- a) 2:1 b) 1:1 c) 1:2 d) 1:3
Last Answer : a) 2:1
Description : 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
Last Answer : b) Current ratio
Description : Long term solvency of a firm can be measured by a) Current ratio b) Net profit ratio c) Gross profit ratio d) Debt equity ratio
Last Answer : d) Debt equity 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
Description : The ratio which depicts the relationship between two items,one of which is drawn from the Balance Sheet and the other from the revenue account a) Current ratio b) Equity Ratio c) Net Profit ratio d) Debtors Turn over Ratio
Last Answer : d) Debtors Turn over Ratio
Description : Closing entries a. are prepared before the financial statements. b. reduce the number of permanent accounts. c. cause the revenue and expense accounts to have zero balances. d. summarize the activity in every account.
Last Answer : c. cause the revenue and expense accounts to have zero balances.
Description : A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as: (a) Master budget (b) Zero base budget ((c) Functional budget (d) Flexible budget
Last Answer : (d) Flexible budget