All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Test: Accounting Ratios- Case Based Type Questions - Commerce MCQ

Test: Accounting Ratios- Case Based Type Questions - Commerce MCQ


Test Description

12 Questions MCQ Test - Test: Accounting Ratios- Case Based Type Questions

Test: Accounting Ratios- Case Based Type Questions for Commerce 2024 is part of Commerce preparation. The Test: Accounting Ratios- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Accounting Ratios- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Accounting Ratios- Case Based Type Questions below.
Solutions of Test: Accounting Ratios- Case Based Type Questions questions in English are available as part of our course for Commerce & Test: Accounting Ratios- Case Based Type Questions solutions in Hindi for Commerce course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Accounting Ratios- Case Based Type Questions | 12 questions in 24 minutes | Mock test for Commerce preparation | Free important questions MCQ to study for Commerce Exam | Download free PDF with solutions
Test: Accounting Ratios- Case Based Type Questions - Question 1
Save

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?

Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 1
Working Capital = Current Assets – Current Liabilities

Current Assets = Working Capital + Current Liabilities

= ₹1,20,000 + ₹5,000

= ₹1,25,000

Test: Accounting Ratios- Case Based Type Questions - Question 2
Save

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 is the revenue from operations?

Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 2
Trade Receivables Turnover ratio

= Credit Revenue from Operations / Average Trade Receivables

4 = Credit Revenue from Operations / 1,80,000

Credit Revenue from Operations = ₹1,80,000 × 4 = ₹ 7,20,000

Credit Revenue from Operations = 75% of Revenue from Operations

₹7,20,000 = 75% of Revenue from Operations Revenue from Operations = ₹9,60,000

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Accounting Ratios- Case Based Type Questions - Question 3
Save

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 is the working Capital?

Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 3
Working Capital Turnover Ratio

= Revenue from Operations / Working Capital

8 = 9,60,000 /Working Capital

Working Capital = 9,60,000 / 8 = ₹ 1,20,000

Test: Accounting Ratios- Case Based Type Questions - Question 4
Save

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 is the Gross Profit?
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 4
Gross Profit = Gross Profit Ratio × Revenue from Operations

= of ₹9,60,000 = ₹3,20,000

Test: Accounting Ratios- Case Based Type Questions - Question 5
Save

Consider the following data and answer the questions that follow:

What is the working capital turnover ratio?
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 5
Working Capital Turnover Ratio = Revenue from Operations / Working Capital

= ₹12,00,000 / ₹1,45,000 = 8.28 times

Test: Accounting Ratios- Case Based Type Questions - Question 6
Save

Consider the following data and answer the questions that follow:

What is the Operating ratio?
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 6
Operating Ratio Cost of Revenue from Operations + Operating Expenses / Revenue from Operations x 100

= ₹9,00,000+ ₹15,000 / ₹12,00,000 x 100

= 76.25%

Test: Accounting Ratios- Case Based Type Questions - Question 7
Save

Consider the following data and answer the questions that follow:

What is the Debt to Equity Ratio?
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 7

Debt to equity Ratio = Total Debt / Shareholders' Fund

= ₹2,50,000 / ₹4,00,000 = 0.63:1

Test: Accounting Ratios- Case Based Type Questions - Question 8
Save

Consider the following data and answer the questions that follow:

What is the quick ratio?
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 8
Quick Ratio = Liquid Assets / Current Liabilities

= ₹2,00,000 / ₹ 75,000 = 2.67 : 1

Test: Accounting Ratios- Case Based Type Questions - Question 9
Save

Read the following information and answer the given questions:

Cost of Revenue from Operations for the year 2020 would be ______________.
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 9
Cost of Revenue from Operations for the year 2020 would be ₹21,12,000.
Test: Accounting Ratios- Case Based Type Questions - Question 10
Save

Read the following information and answer the given questions:

Current Ratio for the year 2020 will be_____. (Choose the correct alternative)
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 10
Current Assets = Prepaid Expenses + Inventory + Trade Receivables + Cash in Hand = ₹3,00,000 + ₹12,00,000 + ₹11,00,000 +₹17,00,000

= ₹43,00,000

Current Liabilities = Outstanding Expenses + Trade Payables

= ₹50,000 + ₹18,00,000

= ₹18,50,000

Current Ratio= Current Assets / Current Liabilities

= ₹43,00,000 / ₹18,50,000 = 2.32 : 1

Test: Accounting Ratios- Case Based Type Questions - Question 11
Save

Read the following information and answer the given questions:

Inventory turnover ratio for the year 2020 will be______.(Choose the correct alternative)
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 11

Inventory Turnover Ratio = Cost of revenue from operations / Average Inventory

= ₹24,00,0000 - ₹2,88,000 / ₹11,00,000 = 1.92 times

Gross Profit Ratio = Gross Profit / Revenue from Operations

Gross Profit = 12% of ₹24,00,000 = ₹2,88,000

Test: Accounting Ratios- Case Based Type Questions - Question 12
Save

Read the following information and answer the given questions:

Quick Ratio for the year 2018 will be_____________. (Choose the correct alternative)
Detailed Solution for Test: Accounting Ratios- Case Based Type Questions - Question 12
Quick Assets = Trade receivables + Cash in hand

= ₹ 10,00,000 + ₹ 15,00,000

= ₹ 25,00,000

Current Liabilities = Outstanding Expenses + Trade Payables

= ₹25,000 + ₹14,00,000

= ₹ 14,25,000

Current Ratio= Current Assets / Current Liabilities

= ₹10,00,000 + ₹15,00,000 / ₹14,25,000 = 1.75 : 1

Information about Test: Accounting Ratios- Case Based Type Questions Page
In this test you can find the Exam questions for Test: Accounting Ratios- Case Based Type Questions solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Accounting Ratios- Case Based Type Questions, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

Download as PDF

Top Courses for Commerce

Important Questions for Accounting Ratios- Case Based Type Questions

Find all the important questions for Accounting Ratios- Case Based Type Questions at EduRev.Get fully prepared for Accounting Ratios- Case Based Type Questions with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Accounting Ratios- Case Based Type Questions syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Accounting Ratios- Case Based Type Questions resources.

Accounting Ratios- Case Based Type Questions MCQs with Answers

Prepare for the Accounting Ratios- Case Based Type Questions within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Accounting Ratios- Case Based Type Questions

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Accounting Ratios- Case Based Type Questions with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup