Ratio Analysis

The mathematical expression that provides a measure of the relationship between two figures is called-----------------------------------------
1. Conclusion
2. Ratio
3. Model
4. Decision
Current ratio indicates----------------------------------------
1. Ability to meet short term obligations
2. Efficiency of management
3. Profitability
4. Long term solvency
Current assets excluding inventory and prepaid expenses is called-------------------------------------------------------
1. Reserves
2. Tangible assets
3. Funds
4. Quick assets
Debt equity ratio is a measure of-------------------------------------------
1. Short term solvency
2. Long term solvency
3. Profitability
4. Efficiency
Match List I with List II and select the correct answer using the codes given below:---------------------------------------------
1. Current ratio
2. Net profit ratio
3. Debt-equity ratio
4. Inventory turnover ratio
To test the liquidity of a concern, which of the following ratios are useful?-----------------------------------------------------
1. (i) Quick ratio
  (ii) Net profit ratio
  (iii) Debt-equity ratio
  (iv) Current ratio
2. (i) Quick ratio
  (ii) Net profit ratio
  (iii) Debt-equity ratio
  (iv) Current ratio
3. (i) Quick ratio
  (ii) Net profit ratio
  (iii) Debt-equity ratio
  (iv) Current ratio
4. (i) Quick ratio
  (ii) Net profit ratio
  (iii) Debt-equity ratio
  (iv) Current ratio
Proportion of share holder's funds to total assets is called---------------------------------------
1. Proprietary ratio
2. Capital gearing ratio
3. Debt equity ratio
4. Current ratio
Which one of the following is not correctly matched?--------------------------------------------
1. Liquid ratio – Proportion
2. Gross profit ratio – Percentage
3. Fixed assets turnover ratio – Percentage
4. Debt-equity ratio – Proportion
Current liabilities ` 40,000; Current assets ` 1,00,000 ; Inventory ` 20,000 . Quick ratio is---------------------------------------------------------
1. 1:1
2. 2.5:1
3. 2:1
4. 1:2
Cost of revenue from operations ` 3,00,000; Inventory in the beginning of the year ` 60,000; Inventory at the close of the year ` 40,000. Inventory turnover ratio is------------------------------------------------------------
1. 2 times
2. 3 times
3. 6 times
4. 8 times

Ratio Analysis

Quiz