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
Option 1: Liquidity Ratio
Option 2: Solvency Ratio
Option 3: Activity Ratio
Option 4: Profitability Ratio
Correct Answer: Activity Ratio
Solution : Activity ratios are a useful tool for assessing how well an organization uses its resources to produce income and cash.
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
Option 1: 30 days
Option 2: 60 days
Option 3: 45 days
Option 4: 15 days
Question : Match List-I with List-II.
List-I
(Items of cash flow)
List-II
(Type of activity)
(A)
Purchase of tangible assets
(I) Operating activity
(B)
Issue of shares
(II) Cash and cash equivalents
(C)
Increase in current assets
(III) Investing activity
(D)
Marketable securities
(IV) Financing activity
Choose the correct answer from the options given below:
Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Option 2: (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
Option 3: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
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