LLP Regulations Quiz
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the formula for calculating the Cash Flow to Debt Ratio?

  • (Total Revenue – Total Expenses) ÷ Total Revenue
  • (Sales – Cost of Goods Sold) ÷ Total Sales
  • (Cash + Marketable Securities + Net Accounts Receivable) ÷ Current Liabilities
  • (Net Income + Depreciation) ÷ Total Debt (correct)
  • According to the Limited Liability Partnership Act, 2008, can any Individual or Body Corporate be a partner in a LLP?

  • No, only Body Corporate can be a partner
  • No, only Individual can be a partner
  • Yes, any Individual or Body Corporate (correct)
  • Yes, any Individual but not Body Corporate
  • What is the Debt Equity Ratio used for?

  • Calculating Return on Equity Ratio
  • Determining Quick Ratio
  • Measuring Financial Leverage (correct)
  • Calculating Gross Margin Ratio
  • When should a designated partner be appointed in a limited liability partnership (LLP)?

    <p>Within thirty days of vacancy arising</p> Signup and view all the answers

    What does the Quick Ratio measure?

    <p>Liquidity and ability to meet short-term obligations</p> Signup and view all the answers

    In relation to financial statements, what does the Assets Turnover Ratio indicate?

    <p>Efficiency of asset utilization in generating sales</p> Signup and view all the answers

    What does the P/E Ratio represent in financial analysis?

    <p>$\frac{Share\ Price}{Earning\ Per\ Share}$</p> Signup and view all the answers

    'Save as otherwise provided', which act is exempted from applying to a Limited Liability Partnership?

    <p>Indian Partnership Act, 1932</p> Signup and view all the answers

    'Return on Equity Ratio' is calculated by dividing which two financial components?

    <p>$\frac{Net\ Income}{Shareholder’s\ Capital}$</p> Signup and view all the answers

    'Gross Margin Ratio' is calculated by dividing which two financial components?

    <p>$\frac{Sales – Cost of Goods Sold}{Total Sales}$</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser