Ratios Questions

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:

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:

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 $2:1$

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:

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:

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:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Profits of firm after admission of partner}& \text{(I) Sacrificing Ratio}\\ \text{(B) Goodwill brought in by new partner}& \text{(II) Old Ratio}\\ \text{(C) Profit on revaluation}& \text{(III) Gaining Ratio}\\ \text{(D) Retiring Partner’s Share of Goodwill}& \text{(IV) New Ratio}\end{array}$$
Choose the correct answer from the options given below:

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. $6,00,000$.

Identify the other name by which Liquid ratio is known:

Identify the ratio out of the following options which is not computed for evaluating the long-term solvency of a business.

Every company analyses its earning capacity of the business which is an outcome of utilisation of resources employed in the business. To analyse profitability, a company can use:A. Dividend Payout RatioB. Return on Net WorthC. Gross Profit RatioD. Quick RatioE. Inventory Turnover RatioChoose the correct answer from the options given below:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I (Accounting Ratios)}& \text{List - II (Functional Classification)}\\ \text{(A) Current Ratio}& \text{(I) Solvency Ratios}\\ \text{(B) Inventory Turnover Ratio}& \text{(II) Liquidity Ratios}\\ \text{(C) Return on Investment}& \text{(III) Profitability Ratios}\\ \text{(D) Proprietary Ratio}& \text{(IV) Activity Ratios}\end{array}$$
Choose the correct answer from the options given below:

Match List I with List II regarding accounting ratios and their descriptions:List I (Ratios)List II (Descriptions)A. Debt-Equity RatioI. Primarily indicates the rate of external funds in financing assets.B. Total assets to Debt ratioII. Higher proportion provides security to creditors.C. Proprietary ratioIII. It reveals the efficiency of business in utilization of funds.D. Return on InvestmentIV. It measures the degree of indebtedness of an enterprise.Choose the correct answer from the options given below:

Make the right combination of ratios that enables to find the short-term liquidity of a firm:A. Return on EquityB. Acid Test RatioC. Sacrificing RatioD. Inventory Turnover RatioE. Current RatioChoose the correct answer from the options given below:

Which of the following ratios is not a profitability ratio?