Ratio Analysis

Standard Current Ratio

• 1:1

• 2:1

• 1:2

• 2:2

How do you calculate Gross Profit?

• Sales - COGS

• Sales - NP

• COGS - Expenses

• COGS - NP

Mathematical expression of two financial items is known as

• Mathematical Analysis

• Mathematical expression

• Ratio analysis

• Ratio expression

a) Liquidity Ratio explain the liquidity Position of the concern

b) Current ratio express the short term liquidity of the Concern

• Both the Statement are Correct

• A is Correct but B is Wrong

• B is Correct but A is Wrong

• Both the Statement are Wrong

Quick Assets= ?

• CA- Prepaid expenses

• CA- Inventory- Prepaid expenses

• CA + Inventory- Prepaid expenses

• CA- Inventory + Prepaid expenses

Proprietary Ratio= ?

• Equity Share capital / Total assets

• Equity Share capital + preference share Capital / Total assets

• Share holder fund/ Total Assets

• Equity Share capital / Total assets- fictitious assets

Debtors Velocity= ?

• 365 days/ Total no. of Debtors

• 365 days/ Trade receivables

• 365 days/ Trade receivable turnover ratio

• 365 days/ velocity period

The current ratio is also known as the:

• Quick ratio

• Working capital ratio

• Cash flow ratio

• Capital structure ratio

The quick ratio is also known as

Dividends per share divided by earnings per share

• Payout ratio

• Dividend payout ratio

• Earnings payout ratio

• Dividend-earnings payout ratio

• NOT IN THE CHOICES