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Ratio analysis

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

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

a)

20%

b)

25%

c)

30%

d)

40%

2.

From the following, which ratio is not a part of Profitability Ratio:

a)

Proprietary Ratio

b)

gross profit ratio

c)

operating ratio

d)

net profit ratio

3.
What does COGS stand for?
a)
cost of goals scored
b)
cost of goods stocked
c)
cost of goods sold
d)
cost of goods solvent
4.

Which of the following transaction will result in an increase in current ratio:

a)

Goods costing $1000 sold on credit for $900

b)

Goods costing $1000 sold on cash for $900

c)

Goods costing $1000 sold in cash for $1100

d)

None of these

5.

If working capital of a company is nil, what will be the current ratio?

a)

1:1

b)

0:1

c)

1:0

d)

2:1

6.

Liquid Assets= ?

a)

CA- Prepaid expenses

b)

CA- Inventory- Prepaid expenses

c)

CA + Inventory- Prepaid expenses

d)

CA- Inventory + Prepaid expenses

7.

If COGS is $4,50,000

G.P. is 25% on sales

What will be the sales?

a)

$5,00,000

b)

$8,00,000

c)

$3,00,000

d)

$6,00,000

8.

If current ratio is 3:1, liquid ratio is 2:1 stock is $50,000 . What will be the value of current assets ?

a)

$200,000

b)

Incomplete information

c)

$50,000

d)

$150,000

9.

Identify the wrong statement

a)

Capital employed= Share holder fund+ Long term Debt- Non trade investment

b)

Share holder fund= Share capital + reserve & Surplus- Fictitious assets

c)

Quick assets is also Known as liquid assets

d)

Net worth is the other name of Capital Employed

10.

Name the difference between Capital Employed and Non-current Liabilities

a)

share holders funds

b)

non current liabilities

c)

total debts

d)

total assets

11.

Total Assets 2,60,000; Total Debts 1,80,000; Current Liabilities 20,000. Calculate Debt to Equity Ratio.

a)

1.66: 1

b)

3:1

c)

2:1

d)

2.25:1

12.

3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times;

Inventory in the beginning is 2 times more than the Inventory at the end. Calculate value of Opening Inventories.

a)

37500

b)

25000

c)

50000

d)

62500

13.

Opening Inventory 2,00,000; Closing Inventory 1,20,000. Inventory Turnover Ratio 8 Times; Selling price 25% above cost. Calculate Gross Profit Ratio.

a)

20

b)

25

c)

15

d)

10

14.

What will be the Operating Profit Ratio, if Operating Ratio is 82.59%

a)

182.59%

b)

18.41%

c)

100%

d)

none of the above

15.

Revenue from Operations 9,00,000, Gross Profit 20% on Cost, Operating Expenses 90,000, Operating ' Ratio will be

a)

100%

b)

50%

c)

90%

d)

10%