New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following ratio is derived from the Balance

    sheet of the company?   A.    Debt Equity Ratio B.    Quick Ratio C.   Stock turnover ratio D.   Expense ratio 
    A Only A Correct Answer Incorrect Answer
    B Only C Correct Answer Incorrect Answer
    C A and B Correct Answer Incorrect Answer
    D C and D Correct Answer Incorrect Answer
    E A, B and C Correct Answer Incorrect Answer

    Solution

    Debt Equity ratio (long term debt/Shareholder equity) and Quick Ratio (current assets- Inventory /current liabilities) are calculated from Balance Sheet. While Stock turnover ratio (COGS/average stock) and expense ratio (operating expenses/net sales) is calculated from the P&L statement.

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