Ratio Analysis - Accounts

Which is not a quick asset?

• Cash equivalents

• Notes receivable

• Inventories

• Cash substitutes

• NOT IN THE CHOICES

Inventory turnover

• Short-term Solvency and Liquidity

• Asset Liquidity and Management Efficiency

• Long-term Financial Position or Stability

• Profitability and Returns to Investors

• NOT IN THE CHOICES

The ——- ratio measures how fast a company can sell its inventory.

• Inventory turn over ratio

• liquidity turnover ratio

• working capital turnover ratio

• current ratio

If total assets are P1,000,000 and total equity is P650,000, how much is the debt ratio?

• 35.00%

• 45.00%

• 55.00%

• 65.00%

• NOT IN THE CHOICES

How do you calculate Gross Profit?

• Sales - COGS

• Sales - NP

• COGS - Expenses

• COGS - NP

Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.

• liquidity ratios
• efficiency ratios
• leverage ratios
• profitability ratios

The amount by which current assets exceeds current liabilities is known as

• a profitability ratio
• working capital
• return on sales
• none of these

These types of ratios are a measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs for cash.

• profitability ratios
• return on sales
• liquidity ratios
• quick ratio

These types of ratios are used to evaluate the earnings performance of the business during the accounting period.

• liquidity ratios
• current ratio
• return on sales
• profitability ratios

Q 8 10)  Current ratio is 4:1.Net Working Capital is Rs.30,000.Find the amount of current Assets is 

• a) Rs.10,000 
• b) Rs 40,000
•     c) Rs.24,000
• d) Rs.6,000