Related InterviewSolutions

• Cost of revenue from operations Rs. 6,00,000, Inventory Turnover Ratio 5, Find out the value of opening inventory, if opening inventory is Rs. 8,000 less than the closing inventory.A. Rs. 1,12,000B. Rs. 1,16,000C. Rs. 1,28,000D. Rs. 1,24,000
• What will be the amount of Gross Profit, if revenue from operations are Rs. 6,00,000 and Gross Profit Ratio is `20%` of cost?A. Rs. 1,50,000B. Rs. 1,00,000C. Rs. 1,20,000D. Rs. 5,00,000
• The following groups of ratios are primarily measure risk:A. liquidity, activity, and profitabilityB. liquidity, activity, and inventoryC. liquidity, activity, and debtD. liquidity, debt and profitability
• The …………… ratios provide the information critical to the long run operation of the firm.A. LiquidityB. ActivityC. SolvencyD. Profitability
• The ……… of a business firm is measured by its ability to satisfy its short term obligations as they become due.A. ActivityB. LiquidityC. DebtD. Profitability
• ABC Co. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was.A. 30 daysB. 36 daysC. 47 daysD. 37 days
• Current Ratio is :A. Solvency RatioB. Liquidity RatioC. Activity RatioD. Profitability Ratio
• The _________ is useful in evaluating credit and collection policies.A. average payment periodB. current ratioC. average collection periodD. current asset turnover
• Current Ratio of a Company is `2.5:1`. If its working capital is Rs. 60,000, its current liabilities will be:A. Rs. 40,000B. Rs. 60,000C. Rs. 1,00,000D. Rs. 24,000
• Credit revenue from operations Rs. 6,00,000, Cash revenue from operations Rs. 1,50,000, Debtors Rs. 1,00,000, B/R Rs. 50,000. Average Collection Period will be :A. 2 MonthsB. 2.4 MonthsC. 3 MonthsD. 1.6 Months