Advanced Accounting and Tally
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Questions and Answers

Which of the following is not included in the liquidity ratios?

  • Quick Ratio
  • Debt-Equity Ratio (correct)
  • Current Ratio
  • Liquid Ratio

    • Which of the following statements is not correct in limitations of Ratio Analysis?

  • There is practically no standard ratio against which the actual performance can be compared.
  • One ratio used without reference to other ratios may be misleading.
  • While comparing ratios of past several years, it should be remembered that changes in price level may make such comparison useful. (correct)
  • The utility of ratios computed from the financial statements of one year only is obviously limited.

    • Sales of A Ltd. during the year is Rs. 8,50,000, Gross Profit is Rs. 40,000, Closing stock is Rs. 2,10,000, and Opening stock is Rs. 1,30,000. Calculate stock turnover.

  • 6.3 times
  • 4 times
  • 4.76 times
  • 5.23 times (correct)

    • Find out the Proprietary Ratio from the given balances: Equity share capital: Rs. 40,00,000, General Reserve: Rs. 7,00,000, Fixed Assets: Rs. 85,00,000, Current Assets: Rs. 15,00,000, Fictitious Assets: Rs. 7,00,000.

    <p>42%</p> Signup and view all the answers

    Operating ratio of a company is 80%. Its sale is Rs. 20,00,000, Sales return is Rs. 2,00,000, and Operating expenses are Rs. 1,00,000. Find out the cost of goods sold.

    <p>Rs. 13,40,000</p> Signup and view all the answers

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