b.com test

Current Ratio

• Current Assets / Current Liabilities
• Current Liabilities / Current Assets
• Total Assets / Total Liabilities
• Total Liabilities / Total Assets

Quick Ratio

• Current Assets / Current Liabilities
• (Current Assets - Inventory) / Current Liabilities
• Current Assets / (Current Liabilities - Inventory)
• Current Assets / Total Liabilities

Net Working Capital

• Total assets minus total liabilities
• Current assets minus current liabilities
• Total equity minus total liabilities
• Total assets minus total equity

• Gross Profit Ratio

• Gross Profit / Net Sales x 100

• Gross Profit / Total Assets x 100

• Gross Profit / Cost of Goods Sold x 100

• Gross Profit / Total Revenue x 100

Net profit ratio

• Net profit divided by total assets x 100

• Net profit divided by total liabilities x 100

• Net profit divided by total equity x 100

• Net profit divided by sales x 100

Cost of goods sold

• sales-gross profit

• revenue from operation-gross loss

• purchase + sales

• current assets+non current assets

debenture is .....

• Current liability

• Non-current liability

• short-term borrowing

• Total liability

Preferable Current ratio

• 2:1

• 3:2

• 1:4

• 4:1

Trade payable turnover ratio

• Credit revenue from operations/average trade receivable

• revenue from operation/working capital

• Net credit purchase/Average trade payable

The Net Profit after Interest and Tax of a Company was Rs. 1,20,000; rate of Tax is 40% ; The Company has 10 % Debentures of rs. 1,00,000. calculate Interest Coverage Ratio.

• 20 Times

• 21 Times

• 22 Times

• 25 Times