Question : Net Profit Ratio of X Ltd. of 5 years for years ended 31st March,
Year
2016
2017
2018
2019
2020
Net Profit Ratio
15%
14%
13%
12%
10
Above table shows Net Profit Ratio is declining over a period of last 5 years, is example of-----------
Option 1: Time Series Analysis
Option 2: Trend Analysis
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Trend Analysis
Solution : Answer = Trend Analysis.
Every financial item is shown for each year in percentage terms via Trend Analysis. These trend analyses aid accounting users in evaluating the company's financial performance as well as in forming opinions regarding different trends and projecting the business's future trajectory. Hence, the correct option is 2.
Question : Net Profit Ratio of X Ltd. with that of Y Ltd., Z Ltd. and industry standards for the year 2019-20:
XLtd.
YLtd.
ZLtd.
Industry
10%
11%
Above table indicates that Net Profit Ratio of X Ltd. is less than that of Y Ltd., Z Ltd. are the example of _________.
Option 3: Cross-sectional Analysis
Question : Match the following :
i.
Sacrificing Ratio
A.
Nominal Account
ii.
Gaining Ratio
B.
Reconstitution of Partnership
iii.
Revaluation Account
C
New Ratio - Old Ratio
Iv
Admission of a Partner
D.
Old Ratio - New Ratio
Option 1: i- B, ii-C, iii-A, iv-D
Option 2: i- D, ii-B, iii-A, iv-C
Option 3: i- D, ii-C, iii-A, iv-B
Option 4: i- D, ii-C, iii-B, iv-A
Question : Read the following information carefully and answer the question
Particulars
Revenue from Operations
8,75,000
Creditors
90,000
Bills Receivable
48,000
Bills Payable
52,000
Purchases
4,20,000
Trade Debtors
59,000
Q. Calculate Trade Receivables Turnover Ratio.
Option 1: 8.18 times
Option 2: 8.23:1
Option 3: 8.18%
Option 4: 8.81:1
Q. Calculate Average Payment Period.
Option 1: 123 days
Option 2: 121 days
Option 3: 132 days
Option 4: 133 days
Option 1: 29.6 times
Option 2: 2.96 times
Option 3: 29.6%
Option 4: 2.69:1
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