1.
‘Inventory Turnover Ratio measures the level of financial leverage.’
1 out of 10
2.
The total debtors of X Ltd. were Rs. 9,00,000. It had created a provision of 10% for bad and doubtful debts. What amount of debtors will be used for calculating the ‘Trade Receivables Turnover Ratio’ ?
2 out of 10
3.
The two basic measures of operational efficiency of a company are
3 out of 10
4.
What will be the effect of purchase of goods for cash Rs. 3,000 on Gross Profit Ratio?
4 out of 10
5.
Purchase of goods Rs. 35,000 for cash will increase the operating ratio.’ Is the statement correct ?
5 out of 10
6.
The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio.
6 out of 10
7.
The operating ratio of a company is 80%. State the impact of the following transaction on the operating ratio: Purchased goods on credit Rs.20,000
7 out of 10
8.
The operating ratio of a company is 80%. State the impact of the following transaction on the operating ratio: Paid wages Rs.5,000
8 out of 10
9.
The operating ratio of a company is 80%. State the impact of the following transaction on the operating ratio: Redeemed Rs. 8,000, 9% debentures
9 out of 10
10.
The operating ratio of a company is 80%. State the impact of the following transaction on the operating ratio: Sold goods Rs.50,000 for cash
10 out of 10
