ratio analysis test

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

Which of the following ratios are the indicator of returns provided by business:

• Efficiency

• Profitability

• Liquidity

• None of these

Turnover ratios are express in .......

• no. of times

• Percentages

• Pure ratios

• None of these

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

If Average stock is 100,000, Sales 400,000, Gross profit 100,000. What is stock turnover ratio?

• 4

• 3

• 8

• 5

What is the formula for Gross Profit ratio

• Profit / Net sales revenue X 100

• Gross profit / Net sales revenue X 100

• Gross profit / Sales revenue X 100

• Profit / Cost of sales X 100

If Revenue from Operations is ? 1,60,000 and Gross Profit is 40,000, Gross Profit Ratio will be

• 20%

• 25%

• 30%

• 40%

Compute for the company's working capital.

Current Assets = P 30, 000

Current Liabilities = P 15, 000

• P 45, 000

• P 10, 000

• P 15, 000

Test of short-term debt paying ability

• Current ratio

• Cash Flow ratio

• Current Asset Turnover

• Acid test