Ratio Analysis

Mathematical expression of two financial items is known as

• Mathematical Analysis

• mathematical expression

• Ratio analysis

• Ratio expression

a) Liquidity Ratio explain the liquidity Position of the concern

b) Current ratio express the short term liquidity of the Concern

• Both the Statement are Correct

• A is Correct but B is Wrong

• B is Correct but A is Wrong

• Both the Statement are Wrong

Identify the wrong statement

• Capital employed= Share holder fund+ Long term Debt- Non trade investment

• Share holder fund= Share capital + reserve & Surplus- Fictitious assets

• Quick assets is also Known as liquid assets

• Net worth is the other name of Capital Employed

Earning available to equity share holder is used to calculate

• Price earning Ratio

• Earning per share

• Net profit Ratio

• Return on Investment

Quick Assets= ?

• CA- Prepaid expenses

• CA- Inventory- Prepaid expenses

• CA + Inventory- Prepaid expenses

• CA- Inventory + Prepaid expenses

Proprietary Ratio= ?

• Equity Share capital / Total assets

• Equity Share capital + preference share Capital / Total assets

• Share holder fund/ Total Assets

• Equity Share capital / Total assets- fictitious assets

In calculating Interest Coverage Ratio, Interest Includes

• Interest on Short term & Long term Loans

• Interest on Short term Loans

• Interest on Short term & Long term Debts

• Interest on Long term Debts

Cost of revenue from operation =

• Revenue from Operations- Gross profit

• Revenue from Operations- Net profit

• Revenue from Operations- Operating Expenses

• Revenue from Operations- Gross profit-- Operating Expenses

Debtors Velocity= ?

• 365 days/ Total no. of Debtors

• 365 days/ Trade receivables

• 365 days/ Trade receivable turnover ratio

• 365 days/ velocity period

With reference to the Debt equity ratio, what is the meaning of Equity

• equity share capital

• Equity Share holders

• Share holders

• Share holders fund