Question : What is the accounting treatment of 'Stores and Spares' when the company will calculate its Inventory Turnover Ratio?

Option 1: Add

Option 2: Subtract

Option 3: Can't say

Option 4: None of the above

Question : What is the accounting treatment of 'Stores and Spares' when the company will calculate its Inventory Turnover Ratio?

Option 1: Add

Option 2: Subtract

Option 3: Can't say

Option 4: None of the above

Question : Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of an increase in the value of closing stock by RS 5,000.

Option 1: Increase

Option 2: Decrease

Option 3: No change

Option 4: Can't say

Question : Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of an increase in the value of closing stock by RS 5,000.

Option 1: Increase

Option 2: Decrease

Option 3: No change

Option 4: Can't say

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.