The mathematical expression that provides a measure of the relationship between two figures is called

(a)

Conclusion

(b)

Ratio

(c)

Model

(d)

Decision

Proportion of share holder's funds to total assets is called

(a)

Proprietary ratio

(b)

Capital gearing ratio

(c)

Debt equity ratio

(d)

Current ratio

Which one of the following is not correctly matched?

(a)

Liquid ratio – Proportion

(b)

Gross profit ratio – Percentage

(c)

Fixed assets turnover ratio – Percentage

(d)

Debt-equity ratio – Proportion

Current liabilities Rs. 40,000; Current assets Rs. 1,00,000 ; Inventory Rs. 20,000. Quick ratio is

(a)

1:1

(b)

2.5:1

(c)

2:1

(d)

1:2

Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

(a)

2 times

(b)

3 times

(c)

6 times

(d)

8 times

What does return on investment ratio indicate?

State any two limitations of ratio analysis.

From the following information, calculate debt equity ratio:

Balance sheet (Extract) as on 31.03.2018

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
Equity share capital	1,00,000
(b) Reserves and surplus	60,000
2. Non-current liabilities
Long-term borrowings (Debentures)	80,000
3. Current liabilities
(a) Trade payables	50,000
(b) Other current liabilities
Outstanding expenses	30,000
Total	3,20,000

Explain the objectives of ratio analysis.

What is inventory conversion period? How is it calculated?

How is operating profit ascertained?

Calculate quick ratio: Total current liabilities Rs. 2,40,000; Total current assets Rs. 4,50,000; Inventories Rs. 70,000; Prepaid expenses Rs. 20,000.

Following is the balance sheet of Lakshmi Ltd. as on 31st March, 2019:

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders’ funds
Equity share capital	4,00,000
2. Non-current liabilities	2,00,000
Long term borrowings
3. Current liabilities
(a) Short-term borrowings	50,000
(b) Trade payables	3,10,000
(c) Other current liabilities
Expenses payable	15,000
(d) Short-term provisions	25,000
Total	10,00,000
II ASSETS
1. Non-current assets
(a) Fixed assets	4,00,000
Tangible assets
2. Current assets
(a) Inventories	1,60,000
(b) Trade debtors	3,20,000
(c) Cash and cash equivalents	80,000
(d) Other current assets
Prepaid expenses	40,000
Total	10,00,000

Calculate:
(i) Current ratio
(ii) Quick ratio