Turnover ratios are also known as ____________

Which ratio is considered as safe margin of solvency?

Proprietary ratio is calculated by ____________

In the balance sheet amount of total assets is Rs.10 lacks, current liabilities Rs.5 lacks & capital & reserves are Rs.2 lacks . What is the debt equity ratio?

Debt Equity Ratio is 3:1, the amount of total assets Rs.20 lacks, current ratio is 1.5:1 and owned funds Rs.3 lacks. What is the amount of current asset?

In the Balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is Rs.12 lacks. What is the amount of tangible net worth of the firm?

When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as _____________

Which of the following are limitations of Ratio Analysis?
i) Ratio analysis may result in false results if variations in price levels are not considered
ii) Ratio analysis ignored qualitative factors
iii) Ratio analysis ignores quantitative factors
iv) Ratio analysis is historical analysis

Which of the following statements are true about Ratio Analysis?
i) Ratio analysis is useful in financial analysis
ii) Ratio analysis is helpful in communication and coordination
iii) Ratio analysis is not helpful in identifying weak sports of the business
iv) Ratio analysis is helpful in financial planning and forecasting

Profit for the objective of calculating a ratio may be taken as ______________

If selling price is fixed 25% above the cost, the Gross Profit ratio is ____________

Given Sales is 1, 20,000 and Gross Profit is 30,000, the gross profit ratio is _______________

While calculating Gross Profit ratio, __________

General Profitability ratios are based on ____________

The relationship between sales and capital employed is known as ______________

_____________ ratio determines the overall efficiency of the business

_______________ Indicates the extent to which the firm depends upon outsiders for its existence

The relationship of liquid assets to current liabilities is known as ________________

Liquidity ratios are otherwise called as ___________

________________ is useful in finding the strength and weakness of a business concern

_____________ Assets = Total current assets - (Stock + Prepaid expenses)

______________ Indicate the performance of the business

Operating expenses include ____________

Stock is a _____________

Absolute liquid asset mean ________________

Prepaid expenses are shown in the ______________

Sales Rs.3,50,000, capital employed Rs.1,75,000. Then the capital turnover ratio is _____________

The relationship of Gross profit to sales is known as _____________

Cost of goods sold is Rs.2,00,000. The opening stock in the beginning of the year is Rs.55,000, and the closing stock at the end of the year is Rs.25,000. Therefore the stock turn over ratio is ______________

Sales Rs.3,00,000. Cost of goods sold Rs.2,55,000. Gross profit is ___________

The relationship of net profit to sales is known as _______________

The Opening stock and Closing stock are Rs.72,000 and Rs.48,000 respectively. Then the average stock is ___________

____________ can be calculated by deducting cost of goods sold from sales.

Total sales of a business is Rs. 8,75,0000. If cash sales is Rs.3,75,000, then credit sales will be _____________

Total sales is Rs.3,40,000 and the gross profit made is Rs.1,40,000. The cost of goods sold will be _________

Opening stock is Rs.10,000; Purchases Rs.2,00,000 and Closing stock is Rs.5,000. Cost of goods sold to ______________

Gross profit ratio established the relationship between ___________

Which of the following operation is correct?

Shareholders funds includes ________________

Liquid liabilities means ________________

Solvency ratios are expressed in terms of ________________

Liquid ratio is otherwise known as __________

When total sales is Rs.2,00,000, cash sales is Rs.65,000, then credit sales will be Rs _______________

100% - Operating profit ratio is equal to _______________

Gross profit can be ascertained by deducting cost of goods sold from ________________

Liquid liabilities means current liabilities less ______________

____________ ratio is modified form of liquid ratio.

_______________ ratio is used to assess the firm’s short term liquidity.

_________________ are those assets which are easily convertible into cash.

Ratio helps in _________________ forecasting

The opening stock and the closing are Rs.33,000, Rs.17,000 respectively. The average stock is ____________

______ are final result of accounting work done during the accounting period.

_____ ratio is otherwise called as Inventory turn over ratio.

______ ratio shows the relationship between share holders fundi proprietors fund and total tangible assets.

_____ assets means current assets less stock and prepaid expenses.

Bank overdraft is an example of _____ liability

_____ ratio measures the firm ability to pay off its current dues.

_____ is an overall measure of profitability of a business concern.

_______ ratio is an indicator of the overall profitability of the business.

_______ ratio is an indicator of operational efficiency of an organisation.

_______ ratio is a test of the operational efficiency of the business.

_____ ratio is the proportion of gross profit to net revenue from operations.

_____ ratios help to assess the profitability of a business concern.

______ is the average time taken by the business for payment of accounts payables.

_____ ratio indicates the numbers of times the trade payable is turned over during the period in relation to net credit purchases.

_____ is the average time taken to collect the amount due from trade receivables.

_____ ratio is the comparison of net credit revenue from operations with average trade receivables during an accounting period.

_____ indicates the number of times inventory is turned over to make revenue from operations during a particular accounting period.

_____ ratios show how efficiently assets or other items have been used to generate revenue from operations.

_____ ratio is a measure of long term solvency as well as capital structure.

______ ratio gives the proportion of proprietors funds to total assets.

____ ratio expresses the relationship between long term debt and shareholders' funds.

_____ ratio is calculated to assess the long term solvency position of a business concern.

_____ means the firm's ability to meet its liabilities in the long run.

_____ are current assets excluding inventories and prepaid expenses.

______ ratio gives the proportion of quick assets to current liabilities.

_____ is the time between the acquisition of an asset for processing and its realisation into cash and cash equivalents.

______ gives the proportion of current assets to current liabilities of a business concern.

_____ help to assess the ability of a business concern to meet its short term financial obligations.

_______ means capability of being converted into cash with case.

______ classification of ratios is done on the basis of the financial statements from which the ratios are calculated.

_____ is expressed in certain number of times of a particular figure.

_______ is expressed as a quotient.

When ratios are calculated on the basis of accounting information, these are called ______

_____ is a mathematical expression of relationship between two related or interdependent items.

_____ is the most important and powerful tool for measuring performance of a business enterprise.

______ is one of the important tools of financial analysis.

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Profitability ratio	1.	Debtors turnover ratio
(ii)	Liquidity ratio	2.	Debt -Equity ratio
(iii)	Solvency ratio	3.	Operating profit ratio
(iv)	Activity ratio	4.	Current ratio

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Proprietory Ratio	1.	\(\frac{Credit Purchases}{Average Accounts Payble}\)
(ii)	Stock Turnover Ratio	2.	\(\frac{Cost of Goods Sold}{Average Stock}\)
(iii)	Creditors Turnover Ratio	3.	\(\frac{Shareholders funds}{Total tangible assets}\)
(iv)	Capital Turnover Ratio	4.	\(\frac{Gross Profit}{Sales}\)

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Capital gearing ratio	1.	Activity ratio or Efficiency ratios
(ii)	Turnorver ratios	2.	Revenue from operations
(iii)	Fixed assets turn over ratios	3.	Earning capacity of the business
(iv)	Profitability ratios	4.	Proportion of fixed income

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Current assets	1.	Acid test ratio
(ii)	Current liabilities	2.	Longterm solvency position
(iii)	Quick ratio	3.	Short term provisions
(iv)	Debt equity ratio	4.	Inventories

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Ratio	1.	Certain number of times
(ii)	Pure	2.	%
(iii)	Percentage	3.	Quotient
(iv)	Time	4.	Mathematical expression

Equity share capital is Rs.2,00,000, Reserve & surplus is Rs.30,000. Debenture Rs.40,000 and the shareholder's funds will be ____________

Liquidity ratios are also called as _____________

Current assets of a business concern is Rs.60,000 and current liabilities are Rs.30,000. Current ratio will be ___________

Cost of goods sold is Rs.4,00,000 and average stock is Rs.8,00,00. Stock turnover ratio will be ___________

Operating ratio is equal to __________

Shareholder funds includes __________

All profitability ratios are expressed in terms of ___________

All activity ratios are expressed in terms of _________

All solvency ratios are expressed in term of

Which ratio indicates the efficiency of utilisation of fixed assets?

Which ratio is the proportion of fixed income bearing funds to equity shareholders funds?

If a ratio is computed with one item from income statement and another item from balance sheet, it is called _____________

If the two items in a ratio are from income statement, it is classified as __________

If both items in a ratio are from balance sheet, it is classified as___________

The financial status and financial performance of business entities can be assessed through ___________

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

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

Which one of the following is not correctly matched?

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

To test the liquidity of a concern, which of the following ratios are useful?
(i) Quick ratio
(ii) Net profit ratio
(iii) Debt-equity ratio
(iv) Current ratio
Select the correct answer using the codes given below:

Match List I with List II and select the correct answer using the codes given below:
List IList II (i) Current ratio 1. Liquidity (ii) Net profit ratio 2. Efficiency (iii) Debt-equity ratio 3. Long term solvency (iv) Inventory turnover ratio 4. Profitability

Debt equity ratio is a measure of

Current assets excluding inventory and prepaid expenses is called

Current ratio indicates

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

(a) Liquidity ratio
(b) Turnover ratios
(c) Sacrificing ratio
(d) Profitability ratios

(a) Income statement ratio
(b) Inter - statement ratio
(c) Balance sheet ratio
(d) New profit sharing ratio

(a) Balance sheet
(b) Pure
(c) Percentage
(d) Time

Which one of the Following is Correctly Matched?

(a)	Gross profit ratio	-	\(\frac { Net\quad profit\quad ratio }{ Revenue\quad from\quad operations } \) x 100
(b)	Operating cost ratio	-	\(\frac { Operating\quad Cost }{ Revenue\quad from\quad operationa } \) x 100
(c)	Operating profit	-	Revenue from operations + Operating cost
(d)	Net profit ratio	-	\(\frac { Gross\quad profit }{ Revenue\quad from\quad operations } \) x 100

Which one of the Following is Not Correctly Matched?

(a)	Current ratio	-	\(\frac { Current\quad assets }{ Current\quad liabilities } \)
(b)	Quick ratio	-	\(\frac { Current\quad assets }{ Current\quad liabilities } \)
(c)	Debt equity ratio	-	\(\frac { Long\quad term\quad debt }{ Shareholderl's\quad funds } \)
(d)	Proprietary ratio	-	\(\frac { Shareholderl's\quad funds }{ Total\quad assets } \)

Which one of the Following is Not Correctly Matched?

(a)	Equity share holders funds	-	Equity share capital + General reserve and surplus
(b)	Average inventory	-	\(\frac { Opening\ inventory\ +\ Closinginventory }{ 2 } \)
(c)	Trade receivables	-	Trade debtors + Bills receivable
(d)	Trade payables	-	Trade creditors - Bills payable

Assertion (A): This shows the number of times the capital has been rotated in the process of carrying on business. Efficient utilisation of capital would lead to higher profitability.
Reason (R): The relationship between Sales and Capital employed is known as liquid Ratio.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Assertion (A): This ratio determines the operating efficiency of the business concern.
Reason (R): Operating ratio measures the amount of expenditure insured in production, sales and distribution of output.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Assertion (A): Total long term debt includes Debentures, long term loans from banks and financial institutions.
Reason (R): Shareholders funds includes Equity share capital, Preference share capital, Reserves and surplus.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Assertion (A): Fixed assets turnover ratio helps to ascertain the soundness of the long term financial position of the concern.
Reason (R): It indicates the proportion between total long term debt and shareholders funds.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the
correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Assertion (A): Liquidity Ratios measure the firms' ability to pay off current dues i.e? repayable within a year.
Reason (R): liquidity ratios are otherwise called as Long Term Solvency Ratios.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

(i) Solvency refers to the firm's ability to meet its long term indebtedness. Solvency ratio studies the firm's ability to meet its long term obligations.
(ii) A ratio is a mathematical relationship between one items expressed in a quantitative form.
(iii) A detailed cause and effect study of the profitability and financial condition is the overall objective of Ratio analysis.
(a) (i) and (ii) are correct
(b) (i) and (iii) are correct
(c) (i) is correct
(d) (i), (ii) and (iii) are correct

(i) Quick ratio is used to assess the firm's short term liquidity. The relationsnip of liquid assets to current liabilities is known as Current ratio.
(ii) Acid Test.ratio is used to assess the firm's short term liqaidity. The relationship of liquid assets to current liabilities is knofch-as Current ratio.
(iii) This ratio is used to assess the firm's short term liquidity. The relationship of liquid assets to current liabilities is known as liquid ratio.
(a) (i) is correct
(b) (i) and (iii) are correct
(c) (iii) is correct
(d) (i), (ii) and (iii) are correct

(i) Current Ratios measure the firms' ability to payoff current dues i.e., repayable within a year. Liquidity ratios are otherwise called as Short Term Solvency Ratios.
(ii) Liquidity Ratios measure the firms' ability to payoff current dues i.e., repayable within a year. Liquidity ratios are otherwise called as Short Term Solvency Ratios.
(iii) Absolute Ratios measure the firms' ability to payoff current dues i.e., repayable within a year. Liquidity ratios are otherwise called as Short Term Solvency Ratios.
(a) (i), (ii) and (iii) are correct
(b) (i) and (ii) are correct
(c) (i) is correct
(d) (ii) is correct

(i) In the words of Spicer and Pegler "the relationship of an item to another expressed in simple mathematical form is known as a ratio"
(ii) In the words of Carter "the relationship of an item to another expressed in simple mathematical form is known as a ratio"
(iii) In the words of Kennedy and Me Millan "the relationship of an item to another expressed in simple mathematical form is known as a ratio"
(a) (i) is correct   (b) (ii) is correct   (c) (i), (ii) and (iii) are correct   (d) (iii) is correct

(i) Financial statements normally include Trading, Profit and Loss, Account and Balance Sheet.
(ii) A detailed cause and effect study of the profitability and financial condition is the overall objective of Ratio analysis.
(iii) financial statements analysis is the process of determining and interpreting the numerical relationship between figures of financial statements.
(a) (i) is correct
(b) (i), (ii) is correct
(c) (i), (ii) and (iii) are correct
(d) (ii), (iii) are correct