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प्रश्न
The Quick Ratio of a company is 0.8 : 1. State whether the Quick Ratio will improve, decline or will not change in the following cases:
- Cash collected from Debtors ₹ 50,000.
- Creditors of ₹ 20,000 paid off.
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उत्तर १
- No Change
- Decline
उत्तर २
- The quick ratio will not change.
Reason: Cash (a quick asset) increases, but debts (also a quick asset) decrease by the same amount. The total quick assets stay unchanged, and there is no effect on current liabilities. - The quick ratio will decline.
Reason: The quick ratio will decline if cash (a quick asset) decreases while paying off current liabilities, reducing overall quick assets.
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संबंधित प्रश्न
What is meant by 'Activity Ratios'?
From the following information obtained from the books of Kundan Ltd., calculate the inventory turnover ratio for the years 2015-16 and 2016-17 :
| 2015-16 (Rs) | 2016-17(Rs) | |
| Inventory on 31st March | 7,00,000 | 17,00,000 |
| Revenue from operations | 50,00,000 | 75,00,000 |
(Gross profit is 25% on the cost of revenue from operations)
In the year 2015-16, inventory increased by Rs 2,00,000.
The quick ratio of a company is 1.5: 1. A state with reason which of the following transactions would
i. increase:
ii. decrease or
iii. not change the ratio
a. Paid rent Rs 3,000 in advance.
b. Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700.
Choose the appropriate alternative from the given options:
Which of the following is not an activity ratio?
| Inventory in the beginning | ₹ 30,000 |
| Inventory at the end | ₹ 50,000 |
| Net Purchases | ₹ 5,00,000 |
| Wages | ₹ 25,000 |
| Salaries | ₹ 40,000 |
| Revenue from operations | ₹ 8,00,000 |
| Carriage Inwards | ₹ 5,000 |
| Returns Outwards | ₹ 30,000 |
Calculate Inventory Turnover Ratio
Calculate Revenue from operations of BN Ltd. From the following information:
| Current assets | ₹ 8,00,000. |
| Quick ratio is | 1.5: 1 |
| Current ratio is | 2: 1 |
| Inventory turnover ratio is | 6 times. |
Goods were sold at a profit of 25% on cost.
Interest on Loans given by a financial company is shown in the Statement of Profit and Loss as ______.
The 'Inventory Turnover Ratio' from the following information will be:
| (₹) | |
| Revenue from Operations | 12,00,000 |
| Average Inventory | 2,00,000 |
| Gross loss ratio | 20% |
If revenue from operations is ₹ 9,00,000; gross profit is 25% on cost and operating expenses are ₹ 90,000 the operating ratio will be:
From the following information, calculate the value of opening and closing inventory:
Inventory Turnover Ratio - 4 times.
Gross Profit = 20% on Revenue from Operations.
Revenue from Operations = ₹ 10,00,000.
Opening inventory is 25% of the inventory at the end.
