Which one of the following ratios is most important in determining the long-term solvency of a company ?
  • Profitability Ratio
  • Debt-Equity Ratio
  • Stock Turnover Ratio
  • Current Ratio
Total Assets ₹ 8,10,000
  • 0.05 : 1
  • 0.4 : 1
  • 2.5 : 1
  • 4 : 1
Equity share capital ₹ 15,00,000
  • 50%
  • 33.3%
  • 200%
  • 60%
Total Assets ₹ 7,70,000
  • 3.5 : 1
  • 2.56 : 1
  • 2.8 : 1
  • 3 : 1
Profitability Ratios are generally expressed in :
  • Simple Ratio
  • Percentage
  • Times
  • None of these
The gross profit ratio is the ratio of gross profit to :
  • Net Cash Sales
  • Net Credit Sales
  • Closing Stock
  • Net Total Sales
Operating Ratio is:
  • Profitability Ratio
  • Activity Ratio
  • Solvency Ratio
  • None of these
Which of the following is an operating’ income ?
  • Sale of Merchandise
  • Interest Income
  • Dividend Income
  • Profit on the sale of old car
Which of the following non-operating expense?
  • Rent
  • Selling Expenses
  • Wages
  • Loss on Sale of Machinery
The following groups of ratios primarily measure risk
  • Liquidity, activity and profitability
  • Liquidity, activity and common stock
  • Liquidity, activity and debt
  • Activity, debt and profitability
To know the return on investment, by capital employed we mean:
  • Net Fixed Assets
  • Current Asset-Current Liabilities
  • Gross Block
  • Fixed Assets + Current Assets-Current Liabilities
The term fixed assets include :
  • Cash
  • Machinery
  • Debtors
  • Prepaid Expenses
Ratio based on figures of profit & loss as well a the Balance sheet are:
  • Profitability Ratios
  • Operation Ratio
  • Liquidity Ratio
  • Composite Ratio
When opening stock is ₹ 50,000 closing stock ₹ 60,000 and cost of goods sold is ₹ 2,20,000, then stock turn over ratio is:
  • 2 times
  • 3 times
  • 4 times
  • 5 times
What does Creditors Turnover Ratio take into account:
  • Total credit purchases
  • Total credit sales
  • Total cash sales
  • Total cash purchases
Cost of goods sold :
  • Sales – Net profit
  • Sales – Gross profit
  • Purchases – Opening Stock
  • None of the above
The ideal liquid ratio is :
  • 2 : 1
  • 1 : 1
  • 5 : 1
  • 4 : 1
The ideal current ratio is :
  • 2 : 1
  • 1 : 2
  • 3 : 2
  • 3 : 4
Profitability Ratio is generally shown in :
  • Simple Ratio
  • Percentage
  • Times
  • None of these
If sales is 7 4,20,000 sales returns is 7 20,000 and cost of goods sold 7 3,20,000 gross profit ratio will be :
  • 20%
  • 25%
  • 15%
  • 10%
0 h : 0 m : 1 s

Answered Not Answered Not Visited Correct : 0 Incorrect : 0