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Question-1
The ______ is useful in evaluating credit and collection policies.
(A)
Average payment period
(B)
Current ratio
(C)
Average collection period
(D)
None of these
Question-2
_________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-3
__________ are especially interested in the average payment period, since it provides them with a sense of the bill - paying patterns of the firm.
(A)
Customers
(B)
Stockholders
(C)
Borrowers and buyers
(D)
None of these
Question-4
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-5
__________ 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
Question-6
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-7
The _________ ratio may indicate the firms is experiencing stock outs and last sales.
(A)
Average payment period
(B)
Inventory turnover
(C)
Average collection period
(D)
None of these
Question-8
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-9
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-10
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
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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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