Statement Analysis Tools and Accounting Ratios Test

Result

Statement Analysis Tools and Accounting Ratios Test - 20

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Which of the following items is not taken into account while computing quick ratio?

A
Cash

B
Bank Balance

C
Bank overdraft

D
Sundry creditors

Solution

The quick ratio is a financial ratio used to gauge a company's liquidity. The quick ratio is also known as the acid test ratio. The quick ratio compares the total amount of cash and cash equivalents + marketable securities + accounts receivable to the amount of current liabilities.
Question 2
1 / -0

Price earning ratio (PER) is calculated according to the following formula ________________.

A
$$\frac{Earning per share}{Market price per equity share}$$

B
$$\frac{Market price per equity share}{Earning per share}$$

C
$$\frac{Net profit after tax and interest}{No of equity share}$$

D
None of the above
Question 3
1 / -0

Which ratio is known as a complementary of pay-out Ratio?

A
Retained earning ratio

B
Dividend yield ratio

C
Debt service coverage ratio

D
None of the above
Question 4
1 / -0

Stock turnover ratio is calculated as ___________.

A
$$\frac{Turnover at selling prices}{stock at cost}$$

B
$$\frac{Turnover at cost}{stock at cost}$$

C
$$\frac{Cost of Good sold}{Avg. Stock}$$

D
Any of the above
Question 5
1 / -0

Which of the following is a satisfactory liquid or acit test ratio?

A
$$2$$ : $$1$$

B
$$1$$ : $$2$$

C
$$1$$ : $$1$$

D
None of the above
Question 6
1 / -0

When the current ratio is 2 : 5 and the amount of Current Liabilities is Rs. $$50,000$$. What is the amount of current assets?

A
Rs. $$62,500$$

B
Rs. $$12,500$$

C
Rs. $$20,000$$

D
None of the above
Question 7
1 / -0

Current ratio is a ______________.

A
Balance sheet ratio

B
Profit & loss ratio

C
Combined ratio

D
Activity ratio
Question 8
1 / -0

When quick ratio is 1.5:1 and the amount of quick assets Rs. $$90,000$$. What is the amount of quick liabilities?

A
Rs. $$60,000$$

B
Rs. $$50,000$$

C
Rs. $$45,000$$

D
Rs. $$30,000$$
Question 9
1 / -0

When current ratio is 2 : 1 an equal increase in current assets and Current Liabilities would ______________.

A
Increase the current ratio

B
Decrease the current ratio

C
Not change the current ratio

D
None of the above
Question 10
1 / -0

Higher the ratio, the more favorable it is, doesn't stand true for ___________.

A
Operating ratio

B
Liquidity ratio

C
Net profit ratio

D
Stock turnover ratio

Solution

Operating ratio is a company's operating expenses as a percentage of revenue. Higher the operating ratio the less favorable it is because, it would leave a smaller margin to meet interest, dividend and other corporate needs. This ratio is calculated mainly to ascertain operational efficiency of the management in their business operations.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Statement Analysis Tools and Accounting Ratios Test - 20

Result

Statement Analysis Tools and Accounting Ratios Test - 20

Score

-

Rank

-

SHARING IS CARING

Question 1

Cash

Bank Balance

Bank overdraft

Sundry creditors

Solution

Question 2

$$\frac{Earning per share}{Market price per equity share}$$

$$\frac{Market price per equity share}{Earning per share}$$

$$\frac{Net profit after tax and interest}{No of equity share}$$

None of the above

Question 3

Retained earning ratio

Dividend yield ratio

Debt service coverage ratio

None of the above

Question 4

$$\frac{Turnover at selling prices}{stock at cost}$$

$$\frac{Turnover at cost}{stock at cost}$$

$$\frac{Cost of Good sold}{Avg. Stock}$$

Any of the above

Question 5

$$2$$ : $$1$$

$$1$$ : $$2$$

$$1$$ : $$1$$

None of the above

Question 6

Rs. $$62,500$$

Rs. $$12,500$$

Rs. $$20,000$$

None of the above

Question 7

Balance sheet ratio

Profit & loss ratio

Combined ratio

Activity ratio

Question 8

Rs. $$60,000$$

Rs. $$50,000$$

Rs. $$45,000$$

Rs. $$30,000$$

Question 9

Increase the current ratio

Decrease the current ratio

Not change the current ratio

None of the above

Question 10

Operating ratio

Liquidity ratio

Net profit ratio

Stock turnover ratio

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.