Question 1
Loss by fire, loss by theft etc are ___
SOLUTION
Solution : B
Loss by fire, loss by theft etc are Non Operating expenses
Question 2
Net operating profit ratio determines___
SOLUTION
Solution : A
Net operating profit ratio determines overall efficiency of the business.
Question 3
___ is the ratio of cost of goods sold plus operating expenses to net sales.
SOLUTION
Solution : A
Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales.
Question 4
cost of goods sold plus operating expenses = ___
SOLUTION
Solution : C
cost of goods sold + operating expenses = Operating cost
Question 5
This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.
SOLUTION
Solution : B
This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts are covered by assets. This ratio is Total assets to debt ratio.
Question 6
Proprietary ratio is expressed in terms of ___
SOLUTION
Solution : A
Proprietary ratio is expressed in terms of Percentage
Question 7
Interest coverage ratio is expressed in terms of ___
SOLUTION
Solution : B
Interest coverage ratio is expressed in terms of Times
Question 8
Turnover ratios are also known as___
SOLUTION
Solution : C
Turnover ratios are also known as both Activity ratios & Performance ratios
Question 9
Employee Benefit expenses is 10,000;
Cost of revenue from operation = 60,000;
Opening Inventory is 30,000 and
Average Inventory is 20,000.
Calculate Inventory Turnover Ratio
SOLUTION
Solution : B
Inventory Turnover Ratio = 60,000 / 20,000 = 3 times
Question 10
The ___________ measures the activity of a firm’s inventory.
SOLUTION
Solution : B
The inventory turnover measures the activity of a firm’s inventory.