Accountancy Tes...

Debt-equity ratio expresses the relationship between short-term debt and equity share capital of an enterprise.

A rise in operating ratio will indicate a rise in efficiency.

Which ratio indicates the speed with which amount is being paid to the creditors?

XYZ Ltd. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was.

Which of the following groups of ratios primarily measure risk?

What will be the effect of purchase of goods for cash ₹ 3,000 on gross profit ratio?

What will be the current ratio of a company whose net working capital is zero?

There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below.

Assertion (A): The debt to equity ratio will increase at the time of issue of equity shares for cash.

Reason (R): Issue of equity shares will increase the shareholders’ funds but the long-term debts will remain the same.

There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below.

Assertion (A): Inventories and prepaid expenses are not considered as quick assets.

Reason (R): Inventories take some time before it is converted into cash while prepaid expenses can be converted into cash.

What is the average profit of business?