management accounting ratio analysis 09-02-2023

 Liquid assets is determined by

• Current assets – stock - Prepaid expenses

• Current assets + stock + prepaid expenses

• Current assets + Prepaid expenses

• None of the above

 If sales is Rs 10,00,000, sales returns is Rs 50,000, Profit Before Tax is Rs 2,00,000, Income tax is 40%, Net profit ratio is

• 12.63%

• 20%

• 10%

• 50%

Given Sales is 1,20,000 and Gross Profit is 30,000, the gross profit ratio is

• 24%

• 25%

• 40%

• 44%

The ideal level of liquid ratio is

• 3:3

• 1:1

• 2:2

• All of the above

Determine Working capital turnover ratio if, Current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and Cost of goods sold is Rs 3,00,000.

• 5 times

• 6 times

• 3 times

• 1.6 times