Commerce Exam  >  Commerce Questions  >   Read the following hypothetical extract of A... Start Learning for Free
Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:
Trade Receivables Turnover Ratio 4 times
Current Liabilities ₹ 5,000
Average Debtors ₹ 1,80,000
Working Capital Turnover Ratio 8 times
Cash Revenue from Operations 25% of Revenue from Operations
Gross Profit Ratio
What will be the value of current assets?
  • a)
    ₹1,25,000
  • b)
    ₹5,000
  • c)
    ₹1,20,000
  • d)
    ₹55,000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Read the following hypothetical extract of ABC Ltd. and answer the q...
Working Capital = Current Assets – Current Liabilities
Current Assets = Working Capital + Current Liabilities
= ₹1,20,000 + ₹5,000
= ₹1,25,000
View all questions of this test
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer?
Question Description
Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the following hypothetical extract of ABC Ltd. and answer the questions that follow: The following information are given:Trade Receivables Turnover Ratio 4 timesCurrent Liabilities ₹ 5,000Average Debtors ₹ 1,80,000Working Capital Turnover Ratio 8 timesCash Revenue from Operations 25% of Revenue from OperationsGross Profit Ratio What will be the value of current assets?a)₹1,25,000b)₹5,000c)₹1,20,000d)₹55,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev