Ratios Questions

Match List I with List II: \begin{tabular}{|l|l|}\hline\textbf{LIST I} & \textbf{LIST II} \ \hlineA. Operating Profit Ratio & I. Solvency Ratios \ \hlineB. Working Capital Turnover Ratio & III. Activity Ratios \ \hlineC. Debt-Equity Ratio & III. Activity Ratios \ \hlineD. Quick Ratio & IV. Profitability Ratios \ \hline\end{tabular} Choose the correct answer from the options given below:

X Ltd. has a Current Ratio of $3.5:1$ and Quick Ratio of $2:1$. If excess of current assets over quick assets represented by inventories is Rs. $24,000$. Calculate current liabilities.

What are the different types of liquidity ratiosA. Interest coverage ratioB. Current ratioC. Inventory turnover ratioD. Gross profit ratioE. Acid test ratio Choose the correct answer from the options given below:

If there is Revenue from Operation Rs. $1,20,000$ and gross profit is $20\%$ of cost, then the amount of gross profit will be :

The ideal Debt Equity Ratio is :

For calculating EPS, the following order will be followed.(A) Calculate number of equity shares(B) Calculate earning available for equity share holders(C) Compute profit after tax(D) Compute EPSChoose the correct answer from the options given below :

The ratio between the speed of travelling of $\text{A}$ and $\text{B}$ is $2:3$ and therefore $\text{A}$ takes $15\text{ minutes}$ more than the time taken by $\text{B}$ to reach a destination. If $\text{A}$ had walked at double the speed, how long would he have taken to cover the distance?

A container contains two liquids, $X$ and $Y$, in the ratio $5:3$. When $8\text{ liters}$ of the mixture is drawn off, and the container is filled with liquid $Y$, the ratio of $X$ to $Y$ becomes $2:3$. How many liters of liquid $X$ was in the container initially?

The ratio of glycerin and water in a mixture is $3:1$. How much fraction of the mixture must be drawn off and substituted by water so that the ratio of glycerin and water becomes $1:1$?

Operating Profit Ratio of XYZ Ltd. is $60\%$. The operating ratio of XYZ Ltd. is:

Earning Capacity of a Company is measured by:

What will be Interest Coverage Ratio, when $20\%$ Long term Debt is Rs. $10,00,000$, Tax Rate $40\%$ and Net profit After Tax is Rs. $6,00,000$.

Match List I with List II

Choose the correct answer from the options given below:

Current ratio is $2:5$, current liabilities Rs. $25,000$, the amount of current assets will be:

What is gross profit ratio?Gross sales Rs. $7,60,000$ Sales returns Rs. $40,000$ Net Profit after interest Rs. $40,000$ Indirect expenses Rs. $60,000$ Interest paid on debentures Rs. $20,000$

When the ratio is low, the firm is said to have favourable indication.

Debt-equity ratio is a sub-part of:

What is Gross Profit Ratio if?Total sales Rs. $6,00,000$ Sales returns Rs. $50,000$ Cost of goods sold Rs. $4,40,000$

A low stock turnover ratio indicates:

Long-term solvency is indicated by:

Consider the following data: Net Profit after tax is Rs. 60,000; 12% Long-term debt is Rs. 20,000,000; and the Tax rate is 40%.Arrange the steps in the correct chronological sequence to calculate the Interest Coverage Ratio:(A) Calculate Net Profit before tax(B) Divide Net Profit before Interest and Tax by Interest on long-term debt(C) Calculate Net profit before interest and tax(D) Calculate Interest on Long-term DebtChoose the correct answer from the options given below:

Match List-I with List-II regarding the core accounting metrics and concepts across various partnership events:List-I (Accounting Metrics)List-II (Partnership Event)(A) Sacrificing ratio(I) Dissolution of Partnership(B) Gaining Ratio(II) Admission of a New Partner(C) Executors Account(III) Retirement of a Partner(D) Realisation Account(IV) Death of a PartnerChoose the correct answer from the choices given below:

Based on the case study details provided, determine the Return on Investment (ROI) for the firm:

Based on the case study details provided, find the Earnings Per Share (EPS) for the equity stockholders:

Based on the case study details provided, calculate the Price/Earnings (P/E) Ratio:

Based on the case study details provided, calculate the Return on Shareholders' Funds:

Match List-I with List-IIList-I(Accounting ratio)List-II(Type of accounting ratio)(A) Current ratio(I) Liquidity ratios(B) Stock turnover ratio(II) Activity ratios(C) Debt Equity ratio(III) Solvency ratios(D) Operating ratio(IV) Profitability ratiosChoose the correct answer from the options given below:

Gross profit ratio of a company was 25%, its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company was Rs. 50,000. Calculate its net profit.

A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the gross profit.

X Ltd. has a current ratio of 3:1 and quick ratio of 2:1. If excess of current assets over quick assets, represented by inventories is Rs. 5,000, calculate current assets and quick assets.

On the basis of the information given below, find the value of the Closing Inventory:
$$\text{Opening Inventory}=\text{Rs. }20,000$$
$$\text{Average Inventory}=\text{Rs. }40,000$$

Which of the following statements are True about ratio analysis-(A) A ratio reflects quantitative and qualitative aspects of results.(B) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount(C) A ratio is always expressed as a quotient of one number divided by another.(D) Ratios help in comparisons of a firm's results over a number of accounting periods as well as with other business enterprises.Choose the correct answer from the options given below:

The following accounting ratios primarily measure a firm's operational or structural risk:(A) Liquidity(B) Activity(C) Debts(D) ProfitabilityChoose the correct answer from the options given below:

Match List-I with List-II:List-I (Ratio Category)List-II (Specific Ratio Example)(A) Liquidity Ratio(I) Interest Coverage Ratio(B) Profitability Ratio(II) Acid-Test Ratio(C) Solvency Ratio(III) Fixed Assets Turnover Ratio(D) Activity Ratio(IV) Return on Capital Employed RatioChoose the correct answer from the options given below:

Which of the following is NOT classified as a Profitability Ratio?

Given the following information:ParticularsAmount (Rs.)Revenue from Operations3,40,000Cost of Revenue from Operations1,20,000Selling expenses80,000Administrative Expenses40,000Calculate Operating ratio.

In the event of the death of a partner, the ratio in which the continuing partners acquire the share from the deceased partner is called .......

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

Which of the following are the objectives of Ratio Analysis?(A) To know the areas of the business which need more attention.
(B) To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business.
(C) To know about the potential areas which can be improved with the effort in the desired direction.
(D) To provide information derived from financial statements useful for making projections and estimates for the future.Choose the correct answer from the options given below:

Which one of the following statements is true?

Profit after tax and interest is $\text{Rs. }1,60,000$. The tax rate is $20\%$. $10\%$ long term borrowing is $\text{Rs. }20,00,000$. Find the profit before tax and after interest.

Based on Case Study 1, find the Average Collection Period.

Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories$50,000$ Trade Receivables$50,000$ Advance Tax$4,000$ Cash and Cash Equivalents$30,000$ Trade Payables$1,00,000$ Bank overdraft$4,000$ Question: Quick Assets of the firm are:

Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories$50,000$ Trade Receivables$50,000$ Advance Tax$4,000$ Cash and Cash Equivalents$30,000$ Trade Payables$1,00,000$ Bank overdraft$4,000$ Question: Quick Ratio (Liquid Ratio) of the firm is:

Match List-I with List-II:List-I(A) Liquidity Ratio(B) Solvency Ratio(C) Activity (or Turnover) Ratio(D) Profitability RatioList-II(I) Inventory Turnover ratio(II) Quick Ratio(III) Price earning ratio(IV) Total asset to debt ratioChoose the correct answer from the options given below:

Consider the following financial metrics of a firm:Total Assets = Rs. $3,00,000$ Non-current Liabilities = Rs. $80,000$ Shareholders' Fund = Rs. $2,00,000$ Fixed Assets = Rs. $1,60,000$ Non-current Investments = Rs. $1,00,000$ The Current Ratio of the firm is:

Based on Case Study 1, what is the Trade Payables Turnover Ratio?

Comprehension:Consider the following account balance particulars of a firm:ParticularsAmount (Rs.)Inventories$50,000$ Trade Receivables$50,000$ Advance Tax$4,000$ Cash and Cash Equivalents$30,000$ Trade Payables$1,00,000$ Bank overdraft$4,000$ Question: Current Ratio of the firm is:

Based on Case Study 1, find the Average Payment Period.

Based on Case Study 1, find the Trade Receivables Turnover Ratio.

Based on Case Study 1, find the value of total Trade Payables.

Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories$60,000$ Trade receivables$60,000$ Advance tax$4,000$ Cash and cash equivalents$50,000$ Trade payables$1,30,000$ Bank Overdraft$4,000$

Match List-I with List-II based on standard financial ratio classifications:List-IList-II(A) Liquidity Ratios(I) Debt to Capital Employed Ratio(B) Solvency Ratios(II) Net profit ratio(C) Activity Ratios(III) Current Ratio(D) Profitability Ratios(IV) Working capital Turnover RatioChoose the correct answer from the options given below:

_________ are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.

Match List-I with List-IIList-IList-II(A) Liquidity Ratio(II) Quick Ratio(B) Solvency Ratio(III) Proprietary Ratio(C) Activity Ratio(I) Trade payable Turnover Ratio(D) Profitability Ratio(IV) Price earning ratioChoose the correct answer from the options given below:

The current ratio is $2.5:1$. Current assets are $\text{Rs. }50,000$ and current liabilities are $\text{Rs. }20,000$. How much must be the reduction in the current assets to bring the ratio to $2:1$

The _________ may indicate that the firm is experiencing stockouts and lost sales.

In a religious gathering, the ratio of number of ladies to that of gents was 3 ∶ 2 When 20 more gents joined, the ratio was reversed. The number of ladies was

If A's salary is $25\%$ more than that of B, then how much percent is B's salary less than that of A?

In a religious gathering, the ratio of the number of ladies to gents was 3:2. When 20 more gents joined, the ratio was reversed. The number of ladies was

If A's salary is 25% more than that of B, then how much percent is B's salary less than that of A?