Question
Which of the following Statements is/are Correct?
I- The CPI captures changes in price level at the consumer level. II- Changes in prices at the wholesale level are tracked by the Wholesale Price Index (WPI). III- CPI can capture the change in the prices of services which the WPI cannot.Solution
Consumer Price Index or CPI is the measure of changes in the price level of a basket of consumer goods and services bought by households. CPI is a numerical estimation calculated using the rates of a sample of representative objects the prices of which are gathered periodically. The CPI captures changes in price level at the consumer level. Changes in prices at the wholesale prices of services which the WPI cannot.
Champion Ltd. define following data for calculating Current Ratio:
Current Assets Rs.20,00,000 ,
Inventories Rs.10,00,000 ,
Working Capital Rs.12, 00,000.
If Current Ratio is 2.5:1 and Working Capital is ₹1,50,000, what are Current Assets?
A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs.
Calculate Return ...
Company A has a current ratio of 1.2:1 and quick ratio of 0.9:1. It also has significant inventory holding. What does this indicate about the company’...
A company has sales ₹50,00,000 and gross profit margin 40% (on sales). Cost of goods sold (COGS) is:
Which of the following is a limitation of financial statements?
XYZ Ltd. is a medium-sized manufacturing company. Its summarized Balance Sheet and additional financial information for the year ended 31st March 2024 a...
ABC Ltd.’s net profit is ₹1 crore. Its equity is ₹5 crore. The return on equity (ROE) is:
A company refinances a short-term loan (due in 4 months) after the balance sheet date but before the financial statements are authorised. Management arg...
Current ratio = 1.5 and current assets = ₹3,00,000. Current liabilities are:
