Accounting for Managers

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

Which of the following ratios are the indicator of returns provided by business:

• Efficiency

• Profitability

• Liquidity

• None of these

Which of the following transaction will result in an increase in current ratio:

• Goods costing $1000 sold on credit for $900

• Goods costing $1000 sold on cash for $900

• Goods costing $1000 sold in cash for $1100

• None of these

If working capital of a company is nil, what will be the current ratio?

• 1:1

• 0:1

• 1:0

• 2:1

Liquid Assets= ?

• CA- Prepaid expenses

• CA- Inventory- Prepaid expenses

• CA + Inventory- Prepaid expenses

• CA- Inventory + Prepaid expenses

Which of the following is the correct formula for calculating Return on investments(ROI)

• N.P. before interest but after tax *100/Capital employed

• N.P. before interest and tax *100/Capital employed

• N.P. after interest & tax *100/Capital employed

• None of these

If COGS is $4,50,000

G.P. is 25% on sales

What will be the sales?

• $5,00,000

• $8,00,000

• $3,00,000

• $6,00,000

If current ratio is 3:1, liquid ratio is 2:1 stock is $50,000 . What will be the value of current assets ?

• $200,000

• Incomplete information

• $50,000

• $150,000

Efficiency ratios highlights:

• How well assets and liabilities are managed

• Measures how quickly assets can be converted to cash

• Share of ownership in a company

• A comparison of two amounts