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Question-1
If a ratio is computed with one variable from income statement and another variable from balance sheet, it is called ______ ratio.
(A)
Composite
(B)
Balance sheet
(C)
Income statement
(D)
None of these
Question-2
Activity Ratios are called _________ ratio.
(A)
Liquidity
(B)
Profitability
(C)
Turnover
(D)
Solvency
Question-3
The ___________ ratio is worked out to ascertain soundness of the long term financial policies of the firm.
(A)
Total assets to debt
(B)
Proprietary
(C)
Debt equity
(D)
None of these
Question-4
ABC Co. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was ______.
(A)
30 days
(B)
36 days
(C)
47 days
(D)
None of these
Question-5
The __________ ratio establishes the relationship between the cost of goods sold plus other operating expenses to net sales.
(A)
Net profit
(B)
Operating
(C)
Gross profit
(D)
None of these
Question-6
________ ratio are computed to measure the efficiency of a business.
(A)
Profitability
(B)
Solvency
(C)
Liquidity
(D)
None of these
Question-7
The two basic measures of liquidity are.
(A)
Inventory turnover and current ratio
(B)
Current ratio and liquid ratio
(C)
Gross profit margin and operating ratio
(D)
Current ratio and average collection period
Question-8
_________ ratio is the proportion of current assets to current liabilities.
(A)
Liquid
(B)
Current
(C)
Net profit
(D)
None of these
Question-9
The __________ ratio will helps to determine the efficiency with which production and/or purchase operation are carried on.
(A)
Operating
(B)
Net Profit
(C)
Gross Profit
(D)
None of these
Question-10
__________ ratios are computed to judge the ability of a firm to pay off its long - term liabilities.
(A)
Liquidity
(B)
Solvency
(C)
Activity
(D)
None of these
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Plus 2 Commerce
CBSE
Practice in Related Chapters
Accounting Not For Profit Organisation
Accounting for Partnership: Basic Concepts
Reconstitution of a Partnership Firm: Admission of a Partner
Dissolution of Partnersip Firm
Accounting for share capital
Issue and Redemption of Debentures
Financial Statements of a Company
Analysis Of Financial Statement
Cash Flow Statement
Accounting Ratios
Reconstitution of a Partnership Firm: Retirement/Death of a Partner
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