( Best 100+ )MANAGENT ACCOUNTING Question And Answers

by Mr. DJ

MANAGENT ACCOUNTING Question And Answers

  1. Current ratio is 2.5, liquid ratio is 1.5 current liabilities is Rs.50,000 find inventory.

Answer:- Inventory = Rs.50,000

  1. Current ratio is 2.4 working capital is Rs.1,40,000 find current assets.

Answer:- Current assets = Rs.2,40,000

  1. Give the formula for gross profit ratio.

Answer:- Gross profit ratio =Gross Profit/Net Sales X 100

  1. Give the formula for net profit ratio.

Answer:- Net profit ratio = Net profit or Operating Profit/Net Sales X 100

  1. Give the formula for operating profit ratio.

Answer:- Operating profit ratio = Operating Profit/Net Sales X 100

  1. Give the formula for inventory turnover ratio.

Answer:- Inventory turnover ratio = Net Sales / average Inventory

  1. Give the formula for debtor’s turnover ratio.

Answer:- Debtor’s turnover ratio = Net credit sales/ average trade debtors

  1. Give the formula for creditor’s turnover ratio.

Answer:- Creditor’s turnover ratio = Net credit purchases/ average trade creditors

  1. Give the formula for working capital turnover ratio.

Answer:- Working capital turnover ratio = Net Sales / Working Capital

  1. Give the formula for average collection period.

Answer:- Average collection period = Average Trade debtors / Net Credit sales X 100

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