Question
A company reports Current Assets ₹6,00,000, Current
Liabilities ₹3,00,000, Inventory ₹1,20,000, Cash ₹60,000. What is the company’s Quick Ratio?Solution
Quick Assets = CA – Inventory = 6,00,000 – 1,20,000 = 4,80,000. Quick Ratio = 4,80,000 / 3,00,000 = 1.6.
₹200 paid as wages for erecting a machine should be debited to:
A company has Sales = ₹40,00,000, Variable cost = ₹24,00,000, Fixed cost = ₹8,00,000, Interest = ₹2,00,000. Calculate Combined Leverage.
Which of the following is not a tool of financial statement analysis?
Which of the following formulae correctly calculates the Operating Profit Margin?
The acid-test (quick) ratio excludes:
Which of the following increases return on assets (ROA) if profit constant?
Company A and Company B both have a net income of ₹5 crores. However, Company A has equity of ₹50 crores while Company B has equity of ₹20 crores....
EBIT = ₹1,00,000; Fixed Financial Cost = ₹25,000; Contribution = ₹2,00,000;
Fixed Operating Cost = ₹1,00,000
Calculate Combined Leverage.
A firm uses 70% debt financing at 10% interest. Its ROE rises despite flat operating profits. What explains this phenomenon?
The preparation of a trial balance is for:
