Question 1

Reliability of ratios depend upon the reliability of financial data.

Accepted Answer

A) true 
B) false 
C) only a 
D) both a and b. 
A) true 
B) false 
C) only a 
D) both a and b. A

Question 2

Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?

Accepted Answer

A) stock velocity ratio. 
B) debtors velocity ratio. 
C) creditors velocity ratio. 
D) working capital turnover ratio. 
A) stock velocity ratio. 
B) debtors velocity ratio. 
C) creditors velocity ratio. 
D) working capital turnover ratio. A

Question 3

Fixed assets turnover ratio is a

Accepted Answer

A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio. 
A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio. D

Question 4

Proprietary ratio is a .

Accepted Answer

A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio. 
A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio.

Question 5

The ratio shows the preference dividend as a proportion of profit available for shareholders is

Accepted Answer

A) interest cover ratio. 
B) fixed dividend cover ratio. 
C) debt service coverage ratio. 
D) dividend yield ratio. 
A) interest cover ratio. 
B) fixed dividend cover ratio. 
C) debt service coverage ratio. 
D) dividend yield ratio.

Question 6

Return on investment is a .

Accepted Answer

A) turnover ratios. 
B) short term solvency ratio. 
C) profitability ratios. 
D) long term solvency ratio. 
A) turnover ratios. 
B) short term solvency ratio. 
C) profitability ratios. 
D) long term solvency ratio.

Question 7

Fixed assets ratio is a

Accepted Answer

A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio. 
A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio.

Question 8

The ratio which determines the profitability from the shareholder's point of view is .

Accepted Answer

A) return on investment. 
B) gross profit ratio. 
C) return on shareholders funds. 
D) operating profit ratio. 
A) return on investment. 
B) gross profit ratio. 
C) return on shareholders funds. 
D) operating profit ratio.

Question 9

Stock turnover ratio is a .

Accepted Answer

A) turnover ratio. 
B) profitability ratio. 
C) short term solvency ratio. 
D) long term solvency ratio. 
A) turnover ratio. 
B) profitability ratio. 
C) short term solvency ratio. 
D) long term solvency ratio.

Question 10

Inventory or stock turnover ratio is also called .

Accepted Answer

A) stock velocity ratio. 
B) debtors velocity ratio. 
C) creditors velocity ratio. 
D) working capital turnover ratio. 
A) stock velocity ratio. 
B) debtors velocity ratio. 
C) creditors velocity ratio. 
D) working capital turnover ratio.

Question 11

Net profit ratio is a .

Accepted Answer

A) turnover ratio. 
B) long term solvency ratio. 
C) short term solvency ratio 
D) profitability ratio. 
A) turnover ratio. 
B) long term solvency ratio. 
C) short term solvency ratio 
D) profitability ratio.

Question 12

The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .

Accepted Answer

A) interest cover ratio. 
B) fixed dividend cover ratio. 
C) debt service coverage ratio. 
D) dividend yield ratio. 
A) interest cover ratio. 
B) fixed dividend cover ratio. 
C) debt service coverage ratio. 
D) dividend yield ratio.

Question 13

The ratio which shows the proportion of profits retained in the business out of the current year's profits is

Accepted Answer

A) retained earnings ratio. 
B) pay out ratio 
C) earnings per share. 
D) price earnings ratio. 
A) retained earnings ratio. 
B) pay out ratio 
C) earnings per share. 
D) price earnings ratio.

Question 14

Current ratio is a

Accepted Answer

A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio. 
A) short-term solvency ratio. 
B) long-term solvency ratio. 
C) profitability ratio. 
D) turnover ratio.

Question 15

The ratio which indicates earnings per share reflected by the market price is .

Accepted Answer

A) retained earnings ratio. 
B) pay out ratio. 
C) earnings per share. 
D) price earnings ratio. 
A) retained earnings ratio. 
B) pay out ratio. 
C) earnings per share. 
D) price earnings ratio.

Question 16

The ratio which is calculated to measure the productivity of total assets is

Accepted Answer

A) return on equity. 
B) return on share holders funds. 
C) return on total assets. 
D) return on equity share holders' funds. 
A) return on equity. 
B) return on share holders funds. 
C) return on total assets. 
D) return on equity share holders' funds.

Question 17

The ratios which reveal the final result of the managerial policies and performance is…………..

Accepted Answer

A) turnover ratios. 
B) profitability ratios. 
C) short term solvency ratio. 
D) long term solvency ratio. 
A) turnover ratios. 
B) profitability ratios. 
C) short term solvency ratio. 
D) long term solvency ratio.

Question 18

Prepaid expenses is an example of .

Accepted Answer

A) fixed assets. 
B) current assets. 
C) fictitious assets. 
D) current liabilities. 
A) fixed assets. 
B) current assets. 
C) fictitious assets. 
D) current liabilities.

Question 19

An ideal current ratio is considered as 1:2

Accepted Answer

A) false 
B) true 
C) may be true 
D) both a and b 
A) false 
B) true 
C) may be true 
D) both a and b

Question 20

Return on equity is also called

Accepted Answer

A) return on investment. 
B) gross profit ratio. 
C) return on shareholders funds. 
D) return on net worth. 
A) return on investment. 
B) gross profit ratio. 
C) return on shareholders funds. 
D) return on net worth.

Reliability of ratios depend upon the reliability of financial data.

Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?

Fixed assets turnover ratio is a

Proprietary ratio is a .

The ratio shows the preference dividend as a proportion of profit available for shareholders is

Return on investment is a .

Fixed assets ratio is a

The ratio which determines the profitability from the shareholder's point of view is .

Stock turnover ratio is a .

Inventory or stock turnover ratio is also called .

Net profit ratio is a .

The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .

The ratio which shows the proportion of profits retained in the business out of the current year's profits is

Current ratio is a

The ratio which indicates earnings per share reflected by the market price is .

The ratio which is calculated to measure the productivity of total assets is

The ratios which reveal the final result of the managerial policies and performance is…………..

Prepaid expenses is an example of .

An ideal current ratio is considered as 1:2

Return on equity is also called

Accounting Standards and Reporting in India

Banking Regulations and Accounting Practices in India

Insurance and Loss Assessment

Accounting and Co-Operative Society

Accounting and Financial Terms and Concepts

Branch Accounting and Single Entry System

Financial Statements and Ratio Analysis

Ratios and Turnovers in Accounting

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Exam 8: Ratio Analysis and Financial Performance Metrics

Reliability of ratios depend upon the reliability of financial data.

Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?

Fixed assets turnover ratio is a

Proprietary ratio is a .

The ratio shows the preference dividend as a proportion of profit available for shareholders is

Return on investment is a .

Fixed assets ratio is a

The ratio which determines the profitability from the shareholder's point of view is .

Stock turnover ratio is a .

Inventory or stock turnover ratio is also called .

Net profit ratio is a .

The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .

The ratio which shows the proportion of profits retained in the business out of the current year's profits is

Current ratio is a

The ratio which indicates earnings per share reflected by the market price is .

The ratio which is calculated to measure the productivity of total assets is

The ratios which reveal the final result of the managerial policies and performance is…………..

Prepaid expenses is an example of .

An ideal current ratio is considered as 1:2

Return on equity is also called

Accounting Standards and Reporting in India

Banking Regulations and Accounting Practices in India

Insurance and Loss Assessment

Accounting and Co-Operative Society

Accounting and Financial Terms and Concepts

Branch Accounting and Single Entry System

Financial Statements and Ratio Analysis

Ratios and Turnovers in Accounting

Filters