Question :
Quick Ratio 1:1.Current Assets Rs 60,000, Current liabilities Rs 40,000. Calculate the value of inventory.
Option 1: Rs.40,000
Option 2: Rs.20,000
Option 3: Rs.10,000
Option 4:
Rs.22,000
Correct Answer: Rs.20,000
Solution : Quick Ratio = Liquid Assets/Current liabilities 1/1 = Liquid Assets/Rs.40,000 Liquid Assets = Rs.40,000 Inventory = Current Assets - Liquid Assets = Rs.60,000 - Rs.40,000 = Rs.20,000. Hence, the correct option is 2.
Question : The Current Ratio of a company is 2:1. State, that the following transaction would improve, reduce or alter the current ratio.
Issue of new shares against the purchase of fixed assets.
Question : Quick Ratio 2.5; Current Assets Rs.1,50,000; Current Liabilities Rs.40,000. The Value of Inventory
Question : The Current Ratio of a company is 2:1 . State, that the following transaction would improve, reduce or alter the current ratio.
Purchasing goods on credit.
From the following data, calculate Inventory Turnover Ratio: Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over
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