Chapter 9: Ratio Analysis May 23, 2024 Maven Leave a Comment Welcome to the Chapter 9: Ratio Analysis Quiz! This quiz is based on the book back questions. Name Email 1. The mathematical expression that provides a measure of the relationship between two figures is called Conclusion Ratio Model Decision None 2. Match List I with List II and select the correct answer using the codes given below: List I List II (i) Current ratio Liquidity (ii) Net profit ratio Efficiency (iii) Debt-equity ratio Long term solvency (iv) Inventory turnover ratio Profitability 1 4 3 2 3 2 4 1 4 3 2 1 1 2 3 4 None 3. Current liabilities Rs. 40,000; Current assets Rs. 1,00,000 ; Inventory Rs. 20,000 . Quick ratio is 1:1 5:1 2:1 1:2 None 4. Which one of the following is not correctly matched? Liquid ratio - Proportion Gross profit ratio - Percentage Fixed assets turnover ratio - Percentage Debt-equity ratio - Proportion None 5. Debt equity ratio is a measure of Short term solvency Long term solvency Profitability Efficiency None 6. To test the liquidity of a concern, which of the following ratios are useful? (i) Quick ratio (ii) Net profit ratio (iii) Debt-equity ratio (iv) Current ratio Select the correct answer using the codes given below: (i) and (ii) (i) and (iv) (ii) and (iii) (ii) and (iv) None 7. Current ratio indicates Ability to meet short term obligations Efficiency of management Profitability Long term solvency None 8. Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is 2 times 3 times 6 times 8 times None 9. Proportion of share holders' funds to total assets is called Proprietary ratio Capital gearing ratio Debt equity ratio Current ratio None 10. Current assets excluding inventory and prepaid expenses is called Reserves Tangible assets Funds Quick assets None Time's up Related Posts:Chapter 2. Consumption AnalysisChapter 3: Production AnalysisChapter 4: Cost and Revenue AnalysisChapter 6: Distribution Analysis
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