Question : ______________ratio is of particular importance in non-manufacturing concerns where current assets play a major role in generating Revenue from Operations

Option 1: Current ratio

Option 2: Liquid ratio

Option 3: Inventory turnover ratio

Option 4: Working capital turnover ratio

Question : Which of the following statements is incorrect with respect to working capital turnover ratio?

Option 1: Working Capital Turnover Ratio has been calculated on the basis of 'Revenue from Operations'.

Option 2: A high working capital turnover ratio shows efficient use of working capital and quick turnover of current assets like inventory and trade receivables.

Option 3: A low working capital turnover ratio indicates under-utilisation of working capital.

Option 4: None of the above.

Question : Which of the following statements is incorrect with respect to working capital turnover ratio?

Option 1: Working Capital Turnover Ratio has been calculated on the basis of 'Revenue from Operations'.

Option 2: A high working capital turnover ratio shows efficient use of working capital and quick turnover of current assets like inventory and trade receivables.

Option 3: A low working capital turnover ratio indicates under-utilisation of working capital.

Option 4: None of the above.

Question : Cash Revenue from Operations Rs. 1,30,000; Credit Revenue from Operations Rs.3,80,000; Revenue from Operations Returns Rs. 10,000; Liquid Assets Rs. 1,40,000; Current Liabilities
Rs. 1,05,000 and Inventory Rs. 90,000. Working capital turnover ratio will be

Option 1: 4 times

Option 2: 2 times

Option 3: 2.25 times

Option 4: None of the above

Question : Cash Revenue from Operations Rs. 1,30,000; Credit Revenue from Operations Rs.3,80,000; Revenue from Operations Returns Rs. 10,000; Liquid Assets Rs. 1,40,000; Current Liabilities
Rs. 1,05,000 and Inventory Rs. 90,000. Working capital turnover ratio will be

Option 1: 4 times

Option 2: 2 times

Option 3: 2.25 times

Option 4: None of the above