Question

Mention two ratios in which one figure is from Profit and Loss Account and one from Balance Sheet.

Answer 1

Following are the two ratios in which one figure is from the Profit and Loss Account and one from the Balance Sheet:

1. Working Capital Turnover Ratio = `("Revenue from Operations (Net Sales)")/("Working Capital")`
2. Trade Receivables Turnover Ratio = `("Credit Revenue from Operations")/("Average Trade Receivables")`