Accounting Ratios Accountancy - Accounting Ratios

An analysis in which the firm's ratio values are compared to those of a key competitor or group of competitors, primarily to identify areas for improvement is called.

1. Time - series analysis.
2. Benchmarking.
3. Combined analysis.
4. None of the above.

The _____________ ratios provide the information critical to the long-run operation of the firm.

1. Liquidity.
2. Activity.
3. Solvency.
4. Profitability.

Ratios provide a _____________ measure of a company's performance and condition.

1. Definitive.
2. Gross.
3. Relative.
4. Qualitative.

The ___________ ratios are primarily measures of return.

1. Liquidity.
2. Activity.
3. Debt.
4. Profitability.

______________ are especially interested in the average payment period, since it provides them with a sense of the bill paying patterns of the firm,

1. Customers.
2. Shareholders.
3. Lenders and suppliers.
4. Borrowers and buyers.

Calculate Cost of Goods Sold from the following information:

From the following information, calculate Inventory Turnover Ratio:
Revenue from Operations (Sales) ₹ 4,00,000, Average Inventory: ₹ 55,000. The rate of Gross Loss on Revenue from Operations was 10%.

Calculate operating ratio from the following:

Calculate 'Return on Capital Employed' from the following detail:
Gross Profit ₹ 2,70,000; Administration Expenses ₹ 60,000; Selling Expenses ₹ 30,000; 12% Long-Term Debts ₹ 2,00,000; Tax Rate 40%; Non Current Assets ₹ 6,00,000; Current Assets ₹ 2,00,000; and Current Liabilities ₹ 50,000.

Net Profit after Interest and Tax ₹ 30,000; Fixed Assets ₹ 3,80,000; Current Assets ₹ 1,70,000; Current Liabilities ₹ 50,000; 10% Long-Term Debt ₹ 2,00,000. Tax Paid ₹ 30,000. Calculate Return on Investment

Given the following information:

Gross Profit ratio of a Company was 25%. Its cash revenue from operations were ₹ 5,00,000 and its credit revenue from operations were 90% of the total revenue from operations. If the indirect expenses of the company were ₹ 1,50,000, calculate its net profit ratio.

Current Assets of a Company are ₹ 3,06,000 and its Current ratio is 1.8 Afterwards, it issued new equity shares off ₹ 1,00,000. Calculate the revised current ratio.

From the following, ascertain Debt-Equity Ratio and Proprietary Ratio:

Calculate Current Ratio and Quick Ratio from the following Balance Sheet:

Calculate Gross Profit Ratio from the following data:

Distinguish between Current Ratio and Quiek Ratio.

Calculate Return on Investment from the following:

Comment upon the short-term financial position of the Company on the basis of the following:
Goodwill ₹ 1,00,000; Sundry Debtors ₹ 2,50,000; Machinery ₹ 4,00,000; Inventory ₹ 5,00,000; Bills Payable ₹ 30,000; Sundry Creditors ₹ 4,20,000; Prepaid Expenses ₹ 25,000; Cash ₹ 40,000; Marketable Securities ₹ 80,000; Bills Receivable ₹ 30,000; Debentures ₹ 1,00,000; Expenses Payable ₹ 10,000; Live Stock ₹ 50,000; Patents ₹ 20,000 Provision for Taxation ₹ 40,000.