MANAGENT ACCOUNTING Question And Answers
- Current ratio is 2.5, liquid ratio is 1.5 current liabilities is Rs.50,000 find inventory.
Answer:- Inventory = Rs.50,000
- Current ratio is 2.4 working capital is Rs.1,40,000 find current assets.
Answer:- Current assets = Rs.2,40,000
- Give the formula for gross profit ratio.
Answer:- Gross profit ratio =Gross Profit/Net Sales X 100
- Give the formula for net profit ratio.
Answer:- Net profit ratio = Net profit or Operating Profit/Net Sales X 100
- Give the formula for operating profit ratio.
Answer:- Operating profit ratio = Operating Profit/Net Sales X 100
- Give the formula for inventory turnover ratio.
Answer:- Inventory turnover ratio = Net Sales / average Inventory
- Give the formula for debtor’s turnover ratio.
Answer:- Debtor’s turnover ratio = Net credit sales/ average trade debtors
- Give the formula for creditor’s turnover ratio.
Answer:- Creditor’s turnover ratio = Net credit purchases/ average trade creditors
- Give the formula for working capital turnover ratio.
Answer:- Working capital turnover ratio = Net Sales / Working Capital
- Give the formula for average collection period.
Answer:- Average collection period = Average Trade debtors / Net Credit sales X 100
