Statement Analy...

Match the following

The immediate solvency ratio is                 .

ROI  is the ratio between                   .

Which of the following ratios is a favorable indication, if it is low?

Current ratio is increased by :
1) Issue of redeemable debentures.
2) Selling of old machine for cash.
3) Converting debentures into equity capital.
4) Cash received from debtors.

Gross profit may be increased by :
1) Increasing selling price
2) Reducing cost of sales
3) Increasing sales of items with higher margin
4) Increasing cost of sales

If gross profit ratio is $$25\%$$ on cost, it is _________ $$\%$$ on sales.

Large inventory accumulation is anticipation of price rise in future.

Borrowing from short term and investing in long term assets indicated by _________________.

Long term solvency is indicated by                    .