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- 1. Multiple Choice
Young India limited has a operating profit ratio of 20%. To maintain this ratio at 25% management may
Increase selling price of stock in trade
Reduce cost of revenue from operations
Increase selling price of stock in trade and to reduce cost of revenue from operation
All of the above
- 2. Multiple Choice
The transaction involving a decrease in debt equity ratio and increase in current ratio is
Issue of debentures against the purchase of fixed assets
Issue of debenture for cash
Redemption of preference share for cash
Issue of equity shares for cash
- 3. Multiple Choice
Current ratio is 2:1. On the sale of fixed asset (book value Rs. 20,000) for Rs. 18,000 state whether the current ratio will
Improve
Decline
Not change
Can't say
- 4. Multiple Choice
if opening inventory is Rs. 1,20,000 cost of revenue from operation is Rs. 10,00,000 and inventory turnover is 5 times then closing inventory will be
Rs. 3,20,000
Rs. 2,80,000
Rs. 1,60,000
Rs. 4,00,000
- 5. Multiple Choice
A transaction involving the decrease in both current ratio and quick ratio is
Sale of non current asset for cash
Sale of stock in trade at loss
Cash payment of a current liability
Purchase of stock in trade on credit
- 6. Multiple Choice
If current ratio form is 2.5:1 and its current liabilities are Rs. 2,00,000. Its working capital will be
Rs. 3,00,000
Rs. 3,75,000
Rs. 4,00,000
Rs. 7,00,000
- 7. Multiple Choice
Non current assets of a firm are Rs. 26,00,000, current assets are Rs. 9,00,000 and shareholders' fund are Rs. 21,50,000. Total debts of the firm will be
Rs. 43,50,000
Rs. 13,50,000
Rs. 21,50,000
Rs. 38,50,000
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