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LLP Regulations Quiz

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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)?

Within thirty days of vacancy arising (C) Signup and view all the answers

What does the Quick Ratio measure?

Liquidity and ability to meet short-term obligations (C) Signup and view all the answers

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

Efficiency of asset utilization in generating sales (B) Signup and view all the answers

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

$\frac{Share\ Price}{Earning\ Per\ Share}$ (B) Signup and view all the answers

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

Indian Partnership Act, 1932 (B) Signup and view all the answers

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

$\frac{Net\ Income}{Shareholder’s\ Capital}$ (C) Signup and view all the answers

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

$\frac{Sales – Cost of Goods Sold}{Total Sales}$ (D) Signup and view all the answers

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