Ratio Analysis – Corporate and Management Accounting MCQ

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Ratio Analysis – Corporate and Management Accounting MCQ

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June 2019: Closing debtors are ₹ 8,00,000 which are 125 percent of opening debtors. Cash sales are 25 percent of total sales. If the debtor’s turnover ratio is 4 times then the number of total sales will be

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Stock velocity 3.75 months, Gross profit ₹ 80,000 being 20% of sales. The closing stock of the year is ₹ 25,000 more than the opening stock. What will be the amount of opening stock and closing stock?

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June 2019: Conducted to ensure borrowings capacity of a concern to meet contingencies in near future is:

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June 2019: The average number of creditors is ₹ 74,000, creditors turnover ratio is 4.80. amount of credit purchase will be:

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June 2019: ABC Ltd. has earned 12% returns on total assets of ₹ 8,00,000 and has a net profit ratio of 8%. Sales of the firm shall be:

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Dec 2018: Capital Gearing Ratio is categorized as:

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Dec 2018: Cost of Goods Sold is ₹ 90 Lakh, Purchases are ₹ 96 Lakh and Closing Stock is ₹ 18 Lakh, then Stock Turnover Ratio will be:

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Dec 2018: If the Average Inventory is ₹ 125 Lakh, Inventory Turnover Ratio is 8 times and Profit is 20% on sales, then the number of sales will be:

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If Stock, Current Assets, and Working Capital are ₹ 25 lakh, ₹ 80 lakh, and ₹ 30 lakh respectively, then the liquid ratio will be:

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Which of the following is not an objective of Management Accounting?

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June 2018: Working capital will not change if there is:

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June 2018: For the financial year ended 31st March 2017, the figures extracted from the balance sheet of EXE Ltd. are as follow:Opening stock ₹ 29,000 Closing stock ₹ 31,000 Cost of goods sold ₹ 2,40,000 The stock turnover ratio will be:

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Debtor velocity = 3 months; Sales ₹ 25,00,000; Bills receivable & bills payable were ₹ 60,000 and ₹ 36,667 respectively. Sundry debtors = ?

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June 2018: The ratio that explains how efficiently companies use their assets to generate sales is:

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: Short-term solvency is indicated by:

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June 2017: Fill in the blank space. Cost of Sales + Operating Expenses  × 100 = …………

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: Proprietor’s net capital employed is known as:

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Owners equity : ₹ 1,00,000 Current debt to total debt: 0.40 Total debt to owners’ equity : 0.60 Fixed assets to owners’ equity : 0.60 Total assets turnover : 2 times Inventory turnover : 8 times Fixed assets will be

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Dec 2016: Total sales: ₹ 24,00,000;

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Dec 2016: The capital of Juhi Ltd. is as follows:10% Preference shares of ₹ 5,00,000 ₹ 10 eachEquity shares of ₹ 100 each ₹ 7,00,000Profit (after tax @ 50%) ₹ 1,55,000Depreciation ₹ 60,000P/E ratio 12 timesThe market price of equity share will be

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Assertion (A)Accountants do not take into consideration the price level changes while valuing various assets in different periods.
Reason (R)It is difficult to determine the value of assets, as the value of assets changes with change in time.

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Dec 2016: Which of the following is not a limitation of financial statements

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Dec 2016: From the books of Raja & Co., the following details as of 31st March 2016 are collected:

 
Equity share capital 20,00,000
Retained earnings 10,00,000
10% Debentures 20,00,000
Current liabilities 10,00,000
Profit before interest & tax 12,00,000
Interest 1,60,000
Tax 3,12,000The rate of return on capital employed will be

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Equity share capital (1,00,000 equity shares of 110 each) 10,00,000General reserve 2,00,00015% Debentures 2,80,000Current liabilities 8,00,000Fixed assets 30,00,000Current assets 18,00,000Annual fixed cost excluding 2,80,000 interestVariable cost ratio 60%Total assets turnover ratio 2.5 times Tax rate 30%Earnings per share (EPS) will be

Sun Ltd. has furnished the following relevant data of financial statements as of 31st March 2016:

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Dec 2016: Interest coverage ratio is obtained by dividing EBIT by

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% Preference share capital : ₹ 3,00,000Equity share capital (₹ 10: ₹ 8,00,000 per share)Profit after 30% tax : ₹ 2,80,000The market price of equity share: ₹ 40The earnings per share and the price-earnings ratio will be

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June 2016: Which of the following statement(s) is/are true:(i) Common size balance sheet is a vertical financial analysis(ii) Financial analysis performed on behalf of shareholders is called internal analysis(iii) Trend percentage may be used for both balance sheet and profit and loss account.Select the correct answer from the options given below

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Stock turnover: 6 times Total sales: ₹ 3,00,000 Gross profit ratio: 20%Closing stock: ₹ 4,000 more than opening stockThe opening stock is

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Current liabilities of a firm are ₹ 1,50,000. Its current ratio is 3:1 and liquid ratio is 1:1. The value of stock will be ____

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If average collection period is 15 days and average account receivables is ₹ 45,000, the total amount of credit sales will be (assume 360 days in a year)

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Dec 2015: Financial statement of X Ltd. shows the following dataOpening stockTotal purchases (including cash purchases of ? 1,75,000)Closing stockThe stock turnover ratio is

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Assertion (A):Either the gross profit ratio, the better it is.
Reason (R):A low gross profit ratio indicates an unfavorable trend in the form of a reduction in selling prices.

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Which of the following pairs is correctly matched

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Which of the following pairs is not correctly matched

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Assertion (A):Accounting ratios reveal the financial position of a concern.
Reason (R):Accounting ratios are not useful in assessing operational efficiency. Select the correct answer from the following

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Dec 2015: Which of the following pairs is correctly matched

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Dec 2015: In ratio analysis, ‘proforma analysis’ implies

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Dec 2015: Determine a firm’s total assets turnover, if its net profits margin is 8%, total assets are ₹ 8,00,000 and the return on investment is 14%

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Dec 2015: are necessary for the study of trends and direction of movements in the financial position and operating results of a concern.

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June 2015: Which of the following is a method used in analyzing financial statements –

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June 2015: Credit sales of Jump Ltd. for the year is ₹ 12,00,000 and debtors at the end of year ₹ 2,40,000. Assuming 360 days in a year, the average collection period will be –

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June 2015: In an organization, working capital is ₹ 1,00,000 and current ratio 3:1. The value of current assets is –

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The current ratio of Brave Ltd. is 2:1, while the quick ratio is 1.8:1. If the current liabilities are ₹ 40,000, the value of the stock will be___

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June 2015: The net profit of a company is ₹ 2,00,000, preference dividend ₹ 25,000, and taxes paid ₹ 15,000. The number of equity shares is 1,00,000. The earnings per share (EPS) is –

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Dec 2014: From the following information find the value of closing stockStock velocity: 6 months Gross profit ratio: 25%Gross profit for the year ended 31st March 2014: ₹ 1,00,000Closing stock for the period – ₹ 20,000 more than it was at the beginning of the year.

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Dec 2014: In an organization, profit after interest, tax, and dividend on preference shares is ₹ 4,00,000. The number of equity shares is 40,000 and the dividend payout ratio is 40%. The dividend per share is

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Dec 2014: Find the current liability from the following:Current ratio – 2:5Liquid ratio – 1:5Prepaid expenses – NilStock – 7 4,000

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