management accounting 21/12/2023

The ________ of a business firm is measured by its ability to satisfy its short-term obligations as they become due.

• Liquidity

• Debt

• Profitability

• Activity

Inventory ratio is a relationship between ______.

• Cost of goods purchased and cost of average inventory

• Cost of goods sold and cost of average inventory, and cost of goods purchased and cost of average inventory.

• Cost of goods sold and cost of average inventory.

• None of the options is correct.

Debt to equity ratio establishes the relationship between ______.

• Long-term debt (external equities) and current assets (internal equities).

• Long-term debt (external equities) and equity (internal equities), and long-term debt (external equities) and current assets (internal equities).

• Long-term debt (external equities) and equity (internal equities).

• None of the options are correct.

Operating ratio is ______.

• Cost of the production + Operating expenses / Net revenue from operations.

• Cost of revenue from operation + Operating expenses / Net revenue from operations.

• Cost of production / Net revenue from operations.

• Cost of revenue from operations + Selling expenses / Net revenue from operations.

Equity or Shareholders fund is equal to _____.

• Equity share capital + Preference share capital.

• Equity share capital + Revenues and Surplus.

• Equity share capital + Preference share capital + Revenues and Surplus.

• None of the options are correct.