Ratio Analysis Mcqs

1. In the Balance sheet of a firm, the debt equity ratio is 2:1.The amount of long term Sources is Rs.1200000. What is the amount of tangible net worth of the firm?
  a. Rs.1200000
  b. Rs.800000
  c. Rs.400000
  d. Rs.200000
  2. Debt Equity Ratio is 3:1, the amount of total assets Rs.2000000, current ratio is 1.5:1 and owned funds Rs.300000.What is the amount of current asset?
  a. Rs.500000
  b. Rs.300000
  c. Rs.1200000
  d. None of the above
  3. Current ratio is 4:1. Net working capital is Rs.30000.Find the amount of current assets.
  a. Rs.10000
  b. Rs.40000
  c. Rs.24000
  d. Rs.6000
  4. Current ratio is 2:5. Current liability is Rs.30000. The networking capital is
  a. Rs.18000
  b. Rs.45000
  c. Rs.(-)45000
  d. Rs.(-)18000
  5.   A firm has Capital of Rs.1000000; Sales of Rs.500000; Gross Profit of
Rs. 200000 and Expenses of Rs.100000. What is the Net Profit Ratio?
  a. 20%
  b. 40%
  c. 50%
  d. 10%
  6. Opening stock Rs.29000; closing stock Rs.31000; purchases Rs.242000, calculate stock turnover ratio.
  a. 9.03 times
  b. 8.03 times
  c. 6.03 times
  d. 4.03 times
  7. Gross profit Rs.100000; net sales Rs.50000 compute gross profit ratio.
  a. 10%
  b. 5%
  c. 2%
  d. 8%
  8. Calculate debtors turnover ratio when credit sales is Rs.1000000 and average receivables is Rs.100000.
  a. 10 times
  b. 20 times
  c. 5 times
  d. 8 times
  9. Current assets Rs.252000 liquid assets Rs.135000 find out stock.
  a. Rs.117000
  b. Rs.17000
  c. Rs.118000
  d. Rs.111000
  10. Ascertain return on shareholders fund when equity share capital is Rs.1200000; preference share capital Rs.300000; reserves Rs.500000; profit after tax Rs.1000000.
  a. 80%
  b. 50%
  c. 60%
  d. 55%