Accounting Ratios

Commerce ⇒ Accountancy

Accounting Ratios starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Accounting Ratios. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

A company has Cost of Goods Sold of ₹4,00,000 and Average Inventory of ₹80,000. What is its Inventory Turnover Ratio?

A company has EBIT of ₹2,00,000 and Interest Expense of ₹50,000. What is its Interest Coverage Ratio?

A company has Net Profit after Tax of ₹80,000, Interest of ₹20,000, and Capital Employed of ₹5,00,000. Calculate its ROI.

A company has Net Sales of ₹5,00,000 and Gross Profit of ₹1,00,000. What is its Gross Profit Ratio?

A company has Net Sales of ₹8,00,000, Cost of Goods Sold of ₹6,00,000, and Operating Expenses of ₹1,00,000. Calculate its Operating Ratio.

Define the Operating Ratio and state its formula.

Explain the difference between Gross Profit Ratio and Net Profit Ratio.

Explain the importance of the Current Ratio for creditors.

Explain the limitations of using accounting ratios for financial analysis.

Explain the significance of the Debt-Equity Ratio in assessing a company's financial position.

Explain the significance of the Proprietary Ratio.

If a company has Current Assets of ₹2,00,000 and Current Liabilities of ₹1,00,000, what is its Current Ratio?

If a company has Net Credit Purchases of ₹6,00,000 and Average Creditors of ₹1,20,000, what is the Creditors Turnover Ratio?

If a company has Net Sales of ₹10,00,000 and Net Profit of ₹1,00,000, what is its Net Profit Ratio?

If a company has Quick Assets of ₹1,50,000 and Current Liabilities of ₹1,00,000, what is its Quick Ratio?

If a company has Shareholders' Funds of ₹4,00,000 and Total Assets of ₹10,00,000, what is its Proprietary Ratio?

If Net Credit Sales are ₹3,00,000 and Average Debtors are ₹60,000, what is the Debtors Turnover Ratio?

What is the formula for calculating the Current Ratio?