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Question-1
A ratio of two variables from the income statement is known as _____ Ratio.
(A)
Balance sheet
(B)
Income statement
(C)
Composite
(D)
None of these
Question-2
The following groups of ratios primarily measure risk.
(A)
liquidity, activity and profitability
(B)
liquidity, activity and common stock
(C)
liquidity, activity and debt
(D)
activity, debt and profitability
Question-3
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-4
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-5
The _____ ratio are primarily measures of return.
(A)
Liquidity
(B)
Activity
(C)
Debt
(D)
None of these
Question-6
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-7
The_________ ratios provide the information critical to the long-run operation of the firm.
(A)
Liquidity
(B)
Activity
(C)
Solvency
(D)
None of these
Question-8
In case both variables are from balance sheet, it is classified as _________ ratios.
(A)
Composite
(B)
Income statement
(C)
Balance sheet
(D)
None of these
Question-9
_________ratio are a measure of the speed with which various accounts are converted into sales or cash.
(A)
Activity
(B)
Liquidity
(C)
Debt
(D)
Profitability
Question-10
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
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Plus 2 Commerce
Kerala (English Medium)
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 Partnership 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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