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WorksheetsAccounting Ratio
Total questions: 20
Worksheet time: 14mins
Liquidity or short term financial position of a business is assessed through (a) ratio.
Interest accrued but not due on debentures will be shown under main head of (a) in
the balance sheet.
Current assets-Current liabilities= (a) .
Solvency of business is assessed through (a) ratio.
Earning capacity of a business is assessed through (a) ratio.
Statement of Profit and Loss account is also called (a) .
What will be the amount of Gross Profit. if revenue from operations are ₹6,00,000 and Gross . Profit Ratio is 20% of cost?
(A) ₹1,50,000
(B) ₹1,00,000
(C) ₹1,20,000
(D) ₹5,00,000
Cost of Revenue from Operations =
(A) Revenue from Operations – Net Profit
(B) Revenue from Operations – Gross Profit
(C) Revenue from Operations – Closing Inventory
(D) Purchases – Closing Inventory
Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Calculate operating ratio :
(A) 75%
(B) 25%
(C) 60%
(D) 15%
Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses? ₹48,000. Calculate operating ratio
(A) 80%
(B) 85%
(C) 96.33%
(D) 93%
Which of the following is not operating expenses?
(A) Office Expenses
(B) Selling Expenses
(C) Bad Debts
(D) Loss by Fire
Liquid Ratio is also known as:
(A) Quick Ratio
(B) Acid Test Ratio
(C) Working Capital Ratio
(D) Both (A) and (B)
A
B
C
D
A company has Liquid Assets Rs. 75,000; Inventories Rs. 15,000; Prepaid Expenses Rs. 10,000 and Working Capital of Rs. 60,000. Its Liquid Ratio will be: (A) 2.5:1
(B) 1.87:1 (C)2:1 (D) 1:1
A
B
C
D
If the total assets are Rs. 13,20,000, Non- Current assets Rs. 6,00,000 and capital employed is Rs. 12,00,000, which of the following correctly represents the current ratio for the venture? (A) 2:1 (B) 4:1 (C) 6:1 (D) 7:1
A
B
C
D
The ideal Current ratio is: (A) 1:2 (B) 2:1 (C) 1:1 (D) 40%
A
B
C
D
Capital Employed can be calculated by:
(A) Debt + Equity
(B)Non current assets + Working capital
(C) Total Assets – Current Liabilities
(D) Any of the above
A
B
C
D
Quick Assets = ?
(a) Current Assets – Prepaid Expenses
(b) Current Assets – Inventory – Prepaid Expenses
(c) Current Assets + Inventory – Prepaid Expenses
(d) Current Assets – Inventory + Prepaid Expenses
A
B
C
D
The Debt Equity ratio of a company is 1: 2. Purchase of a fixed asset for Rs. 5,00,000 on long term deferred payment basis. Debt Equity Ratio will: (a) Increase (b) Decrease (c ) Remain constant (d) Not change
A
B
C
D
Current Ratio is 1.5:1. Working Capital is 30,000. What will be the amount of current liabilities? (a) 20,000 (b) 60,000 (c ) 1,65,000 (d) 1,20,000
A
B
C
D
Current assets include only those assets which are expected to be realised within ……………………… (A) 3 months (B) 6 months (C) 1 year (D) 2 years
A
B
C
D
