Stock turnover ratio is used to determine -----------------------of an enterprise a) Profitability
b) Liquidity& solvency
c) Efficiency
d) Growth

1 Answer

Answer :

c) Efficiency

Related questions

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

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

Last Answer : d) Solvency ratio

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 : Rol measures----- a) Profitability in relation to investment b) Profitability in relation to sales c) Operating efficiency d) Long term solvency

Last Answer : a) Profitability in relation to investment

Description : Solvency ratio indicates----------------- a) Credit worthiness b) Activity c) Profitability d) None of these

Last Answer : a) Credit worthiness

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

Last Answer : a) Effiency

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 : 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 index of efficiency and profitability of the business a) Operating ratio b) Operating profit ratio c) Expense ratio d) Net profit ratio

Last Answer : b) Operating profit ratio

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 : 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

Last Answer : Answer: It is a superior measure compared to the cash flow generated per share

Description : Capital gearing ratio is ___________. (a) Market test ratio (b) Long-term solvency ratio (c) Liquid ratio (d) urnover ratio

Last Answer : (b) Long-term solvency 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 : Ratio of net profit before interest and tax to sales is------------------------------ a) Solvency ratio b) Capital gearing c) Operating profit ratio d) None of these

Last Answer : c) Operating profit ratio

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

Description : Debt service ratio is also known as -------------- a) Interest coverage ratio b) Dividend payout ratio c) Solvency ratio d) Debtors turn over ratio

Last Answer : a) Interest coverage ratio

Description : 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

Last Answer : b) Solvency 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

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 : 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 which shows the relationship b/w share holder’s fund and total assets a) Debit equity ratio b) Proprietary ratio c) Solvency ratio d) Fixed asset

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

Last Answer : b) Liquidity 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 : Net worth refers to owner’s-------------------------- a) Equity b) Solvency c) Liability d) None of these

Last Answer : a) Equity

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 : 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 : Afford full diagnosis of the profitability and financial position a) Preparation of Profit and Loss Account b) Balance Sheet c) Final Accounts d) Analysis of financial statement

Last Answer : d) Analysis of financial statement

Description : ------------- gives a diagnosis of the profitability and financial position a) Analysis of financial statements b) Preparation of financial statements c) Construction of statements d) None of the above

Last Answer : a) Analysis of financial statements

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 purpose of all good small business strategy is__________. A. to increase turnover. B. to increase profitability. C. to achieve competitive advantage. D. to achieve stated objectives.

Last Answer : D. to achieve stated objectives.

Description : An enterprise which sells goods to customers is known as a a. proprietorship. b. corporation. c. retailer. d. service firm.

Last Answer : . retailer.

Description : . Which one of the following is an optional step in the accounting cycle of a business enterprise? a. Analyze business transactions b. Prepare a worksheet c. Prepare a trial balance d. Post to the ledger accounts

Last Answer : b. Prepare a worksheet

Description : A foreign currency transaction arises when an enterprise buys or sells goods or services whose price is denominated in the reporting currency.

Last Answer : FALSE

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 : 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 : Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be– (A) 0•5 times (B) 0•8 times (C) 0•10 times (D) 0•4 times

Last Answer : Answer: 0•5 times