Practice Test

Q1) A very high current ratio will Show Answer

Q2) A very high current ratio may be due to Show Answer

Q3) Current ratio shows Show Answer

Q4) One of the following is not an absolute Liquid asset Show Answer

Q5) Liquid ratio which is equal to the following is favorable Show Answer

Q6) Proprietary ratio shows Show Answer

Q7) Higher proprietary ratio shows that Show Answer

Q8) Higher gearing means Show Answer

Q9) High geared company exposes to Show Answer

Q10) Shareholder's equity includes Show Answer

Q11) Fixed Income bearing funds do not include one the following : Show Answer

Q12) Loan fund does not include one of the following Show Answer

Q13) The ratio that indicates ability of the company to pay urgent obligation immediately is Show Answer

Q14) A low inventory turnover ratio indicates Show Answer

Q15) Higher Stock turnover ratio as compared to industry indicates that Show Answer

Q16) A longer payment period indicates that Show Answer

Q17) Longer collection period indicates that Show Answer

Q18) Higher G. P. ratio may be due to Show Answer

Q19) Stock working capital ratio is a proportion between Show Answer

Q20) One of the reasons responsible for decrease in gross profit ratio is Show Answer

Q21) Return on capital employed is a relationship between Show Answer

Q22) Return on capital employed is also known as : Show Answer

Q23) Debt equity ratio is a relationship between Show Answer

Q24) Debt service ratio shows Show Answer

Q25) Dividend payout ratio is a proportion between Show Answer

Q26) Operating ratio is a proportion between Show Answer

Q27) Shareholder's equity does not include Show Answer

Q28) Net profit ratio indicates Show Answer

Q29) Proprietary ratio is a proportion between Show Answer

Q30) Return on proprietors fund indicates Show Answer

Q31) Operating performance is best measured by Show Answer

Q32) Current ratio is 2.5, working capital is Rs.60,000 current assets will be Show Answer

Q33) Current ratio is 2.5 working capital is rs.60, 000 current labilities will be Show Answer

Q34) G.P Rs. 1,00, 000, Total sales Rs. 5, 25, 000, sales return Rs. 25,000. G.P ratio will be Show Answer

Q35) Net sales Rs. 1,40 000 , G.P: Rs. 10,000, N.P: Rs. 6,000 , B.R: Rs.2000, Debtors: Rs.8,800, stock Rs. 10,000, cash Rs.6,000, creditors Rs.12,000, Bills payable Rs.8,800. Current ratio will be Show Answer

Q36) Net sales Rs. 1,40 000 G.P Rs. 10,000 N.P Rs. 6,000 B.R Rs.2000, Debtors Rs.8, 800, stock Rs. 10,000 cash Rs.6,000 creditors Rs.12,000, Bills payable Rs.8,800. Current NOP will be Show Answer

Q37) Net sales Rs. 1,40 000 G.P Rs. 10,000 N.P Rs. 6,000 B.R Rs.2000, Debtors Rs.8,800, stock Rs. 10,000 cash Rs.6,000 creditors Rs.12,000, Bills payable Rs.8,800. G.P ratio will be Show Answer

Q38) Sales are Rs.33,984, sales return Rs. 380, opening stock Rs.1,378, closing stock Rs.1,814, GP Rs. 8,068. Stock turnover ratio will be Show Answer

Q39) Sales are Rs.33,984 sales return Rs. 380 opening stock Rs.1,378 closing stock Rs.1, 814 GP Rs. 8, 068. Gross profit ratio will be Show Answer

Q40) Liquid ratio is 1.5, net working capital is Rs.1,20,000 stock is Rs.80,000 current assets will be Show Answer

Q41) Opening stock Rs. 62,000, purchases Rs.4,20,000, sales Rs.6,00,000, GP 33.33% on cost closing stock will be Show Answer

Q42) Current ratio 4: 1, liquid ratio 3: 1. If inventory is Rs.36, 000. Current assets will be Show Answer

Q43) Current ratio 4: 1, liquid ratio 3: 1. If inventory is Rs.36, 000. Working Capital will be Show Answer

Q44) Opening stock Rs. 29, 000 closing stock Rs.31, 000 sales Rs. 3, 00, 000. GP 25% on cost. Stock turnover ratio will be Show Answer

Q45) Stock turnover 5times, closing stock Rs.10, 000 more than that of the beginning, credit sale Rs.4, 00, 000, GP 25% on cost current liabilities Rs.1, 20, 000 Acid test ratio 0.75. Current assets will be Show Answer

Q46) Debt equity ratio is 1:2 which of thefollowing would increase the ratio. Show Answer

Q47) NP before interest and tax Rs.5,00,000. Interest is Rs.1,00,000. Interest coverage will be Show Answer

Q48) Cost of goods sold Rs. 1,00,000, stock turnover 4 times, closing stock Rs.10,000 in excess of opening stock, opening and closing stock will be Show Answer

Q49) 15% Debentures Rs.4,00,000 NP after interest and tax Rs.50,000 proprietor fund Rs.2,40,000. Tax rate 50%. 15% preference share capital is Rs.1,00,000. Return on capital employed Show Answer

Q50) Total debt Rs.9,00,000. Capital employed Rs.12,00000, current liabilities Rs.1,00000. Debt equity ratio will be Show Answer

Q51) Debt Equity Ratio is 2. The change in the ratio due to purchase of fixed assets on credit of 2 months is Show Answer

Q52) Share holders fund is Rs.80,000. Total debt is Rs.1, 80,000 ,current liabilities Rs.20,000, preference capital Rs.40,000. The capital gearing ratio will be Show Answer

Q53) NP before interest and tax is Rs3,20,000 interests is Rs.40,000. The interest coverage is Show Answer

Q54) Opening stock is Rs.20,000, closing stock Rs. 10,000 , Purchases Rs. 50,000 wages Rs.3,000,carriage Rs.2,000 the STR is Show Answer

Q55) Cost of goods sold is Rs.5,40,000,Net sales Rs.6,00,000. Sales returns Rs.10,000. The GP ratio is Show Answer

Q56) GP ratio is 20%. Purchase of goods Rs.20,000 will Show Answer

Q57) Operating profit ratio of a company is 20%. What is the effect of purchase of goods Rs.20, 000 on operating profit? Show Answer

Q58) Net profit after interest and tax Rs.2, 22,000, equity capital (10 each) Rs.1, 00,000. the EPS is Show Answer

Q59) EPS Rs.22.20, Prize per share Rs.222. The P/E ratio is Show Answer

Q60) The quick ratio is 2:1 cash received from debtors will Show Answer

Q61) Net credit sales Rs.1, 00, 000. Average debtors Rs.25, 000. Collection period is Show Answer

Q62) Operating profit ratio if operating ratio is 85% Show Answer

Q63) Working capital is Rs.1, 20, 000. Total debt Rs.2, 60,000, long term debt Rs.2, 00,000. The current ratio Show Answer

Q64) Current ratio is 4.5, liquid ratio is 3, inventory is Rs.36, 000, the liquid assets will be Show Answer

Q65) Ratio is a proportion between two figures. Show Answer

Q66) One figure is divided by another figure to get _____ratio. Show Answer

Q67) Turnover ratios is expresses in ________. Show Answer

Q68) Balance sheet ratio is a ratio between two figures from ____ Show Answer

Q69) Combined ratio is ratio between one figure from ________ and another figure from Show Answer

Q70) current ratio = __________/current liabilities Show Answer

Q71) Current ratio shows _____ financial position Show Answer

Q72) Liquid ratio is a relationship between liquid assets and _____ Show Answer

Q73) _________ are near cash assets Show Answer

Q74) working capital is an excess of current assets over ________ Show Answer

Q75) Debt equity ratio shows proportion between _______ and____ Show Answer

Q76) Proprietary ratio shows = ______ / total assets Show Answer

Q77) Cost of goods sold is divided by average stock to get _____ Show Answer

Q78) _______ shows trading efficiency Show Answer

Q79) ______ shows operating efficiency Show Answer

Q80) Stock _____shows the speed of movement of stock Show Answer

Q81) ________Ratio shows ability of a firm to service Show Answer

Q82) ______shows the period for which amount of sales remains invested in debtors. Show Answer

Q83) Current ratio and acid test ratio are the same. Show Answer

Q84) Acid test ratio test the acid Show Answer

Q85) Short term solvency ratio measures the abilityof the firm to pay current liabilities Show Answer

Q86) Equity fund includes debentures Show Answer

Q87) In general low turnover ratio is desirable. Show Answer

Q88) It is conceptually correct to decide stock turnover ratio by dividing cost of goods sold by average stock. Show Answer

Q89) Excess of sales over cost of goods sold is gross profit. Show Answer

Q90) Proprietary ratio examines short term solvency position Show Answer

Q91) Capital gearing ratio shows the speed of capital. Show Answer

Q92) Debt equity is a proportion between short term debt and equity. Show Answer

Q93) Operating ratio must be higher for measurement of profitability Show Answer

Q94) Net profit ratio a measure of profitability Show Answer

Q95) Capital employed is equal to fixed assets. Show Answer

Q96) Pref. share capital is a loan capital Show Answer

Q97) Dividend payout ratio shows dividend payingtrend of the firm. Show Answer

Q98) Debt service ratio shows the servicing of debt. Show Answer

Q99) Debt collection period shows the period taken by debtors to pay. Show Answer

Q100) Stock working capital ratio is a relationship between stock and working capital. Show Answer

Q101) Activity of the management is judged by debtors turnover ratio. Show Answer

Q102) Expenses ratio is a relationship between expenses and sales. Show Answer

Q103) Higher G. P. ratio shows higher trading efficiency of an organization. Show Answer

Q104) Current ratio Show Answer

Q105) The standard current ratio is Show Answer

Q106) Gross profit ratio Show Answer

Q107) Which of the following asset is not a quick current asset Show Answer

Q108) Revenue statement ratios may study Show Answer

Q109) When opening stock is Rs.10000, closing stock Rs.12000 and cost of goods sold Rs.44,000 stock turnover ratio is Show Answer

Q110) Proprietory ratio Show Answer

Q111) Dividing net sales by average debtor would yield. Show Answer

Q112) Capital gearing ratio Show Answer

Q113) Under trading implies Show Answer

Q114) Debt equity ratio Show Answer

Q115) parties interested in ratio Show Answer

Q116) Liquidity can be studied from Show Answer

Q117) Low proprietary ratio indicates Show Answer

Q118) Following ratio is useful for debentureholders Show Answer

Q119) Trading on Equity is computed _______ ratio. Show Answer

Q120) Standard liquid ratio Show Answer

Q121) The ratio which indicate the relation between loan fund and propritor's fund Show Answer

Q122) A Liquid ratio lower than 1:1 shows. Show Answer

Q123) The ratio which indicates the collection period of the company Show Answer

Q124) While computing Proprietory ratio Show Answer

Q125) Which is liquidity ratio Show Answer

Q126) Quick liabilities indicates_______ Show Answer

Q127) Current ratio is 2:1, working capital is Rs.10,00,000, so current liability will be _______ . Show Answer

Q128) What ratio indicates the relatioship betweenshareholders funds and outsiders finance? Show Answer

Q129) A high G.P ratio indicates ________ Show Answer

Q130) A high proprietory ratio indicates ________. Show Answer

Q131) Earning per share Show Answer

Q132) High stock turnover ratio indicates Show Answer

Q133) Which of the following is a liquidity ratio? Show Answer

Q134) When the current ratio is 2:5 and the amount of current liabilities is Rs.50,000what is amount of working capital ? Show Answer

Q135) If the earning per share is Rs.3.50 and return on equity is 33 1/3%, the book value per share is Show Answer

Q136) When Quick ratio is 1.5:1 and amount of quick assets Rs.15,000 what is the amount of quick liabilities? Show Answer

Q137) What ratio are applied to find out theefficiency of performance of a firm? Show Answer

Q138) Classification of ratio from the point of view of Creditors Show Answer

Q139) Debtors turnover ratio shows the number ofdays taken by the company to collectmoney from _______. Show Answer

Q140) If the Current ratio is given 2:1 and cheque from debtor received and in Balance sheet there is Bank overdraft.The ratio will Show Answer

Q141) The current ratio is the ratio of Show Answer

Q142) Ratio can be expressed in Show Answer