Question : The Current Ratio of a company is 2:1. State, that the following transaction would improve, reduce or alter the current ratio.

Issue of new shares against the purchase of fixed assets.

Option 1:

Improve

Option 2:

Reduce

Option 3:

Alter

Option 4: Not alter

Question : Quick Ratio 2.5; Current Assets Rs.1,50,000; Current Liabilities Rs.40,000. The Value of Inventory

Option 1: Rs 60,000

Option 2: Rs 40,000

Option 3: Rs 50,000

Option 4: None of the above.

Question : Quick Ratio 2.5; Current Assets Rs.1,50,000; Current Liabilities Rs.40,000. The Value of Inventory

Option 1: Rs 60,000

Option 2: Rs 40,000

Option 3: Rs 50,000

Option 4: None of the above.

Question : The Current Ratio of a company is 2:1 . State, that the following transaction would improve, reduce or alter the current ratio.

Purchasing goods on credit.

Option 1: Improve

Option 2: Reduce

Option 3:

Alter

Option 4:

None of the above

Question :

From the following data, calculate Inventory Turnover Ratio:
Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; 
Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over opening inventory Rs. 20,000.

Option 1: 6 Times

Option 2: 4 Times

Option 3: 3 Times

Option 4: 5 Times