
A firm has total liabilities of Rs. 21 lac, goodwill of Rs. 1 lac, a net worth of Rs. 6 lac. What is the total outside liabilities to the tangible net worth ratio?
a. 1:3
b. 3:1
c. 2.7:1
d. 2.3:1
a. 1:3
b. 3:1
c. 2.7:1
d. 2.3:1


Important Questions on Financial Statements Analysis
Total liabilities of the firm are 70 lac of which term liabilities are 25 lac. Current Assets are 40 lac and the current ratio is 2:1, what will be the net worth of the firm?
a. 25 lac
b. 20 lac
c. 45 lac
d. 30 lac
e. 50 lac

Total liabilities of the firm are lac and Current ratio is . If its fixed assets and assets other than current assets are lac and debt equity ratio is , what is the amount of long term liabilities?
a. lac
b. lac
c. lac
d. lac

Which of the formulae is correctly given?
a. Sales/Inventory = Inventory Turnover ratio
b. Sales / Debtors = Debtor Velocity ratio or Debt Collection period
c. Debtors / Sales = Debtor Turnover ratio
d. None of the above

A firm has a sales of Rs. 200 Lac. Its Average stocks are Rs. 40 lac.The stock turnover ratio is:
a. 3 times
b. 5 times
c. 2 times
d. None of the above

A company has stock of and its Stock Turnover ratio . What is the amount of sales:-
a.
b.
c.
d.

A firm has average book debts of lac and its sales are lac. What is the debt collection period or debtor velocity ratio:
a. month
b. days
c. days
d. None of the above

The balance sheet of a firm has total current assets of lac and current assets other than stocks lac. If the sales are lac, what is the stock turnover ratio?
a. times
b. times
c. times
d. times
e. times

What is indicated by the high Debtors turnover ratio, of a business firm?
a. The firm is efficiently collecting its receivables.
b. The firm is slow in collection of its book debts.
c. The firm is having very high level of book debts.
d. The firm is having low sales compared to book debts.
