List of top Accountancy Questions on Accounting Ratios

Calculate opening and closing Trade Payables from the following information :
Total purchases ₹ 15,00,000;
Cash purchases are 25% of credit purchases;
Trade payables turnover ratio is 4 times;
Closing trade payables are two times of opening trade payables.
The Debt Equity Ratio of Manak Enterprises is 2.5 : 1. Which of the following transaction will result in increase in this ratio?
(A) Purchase of goods on credit ₹ 2,00,000.
(B) Payment to creditors ₹ 3,00,000.
(C) Issue of debentures ₹ 6,00,000.
(D) Sale of furniture of the book value of ₹ 4,00,000 at a profit of 10%.

The following information has been obtained from the books of Gama Ltd.:

ParticularsAmount (₹)
Inventory2,50,000
Total Current Assets3,40,000
Shareholder’s Funds10,00,000
12% Debentures20,00,000
Net Profit Before Tax9,60,000
Cost of Revenue from Operations6,00,000
Calculate Current Assets and Quick Assets of Beeta Ltd. from the following information:
  • Quick Ratio = 0.75 : 1
  • Current Liabilities = 6,00,000
  • Revenue from Operations = 4,00,000
  • Gross Profit Ratio = 20% of Revenue from Operations
  • Inventory Turnover Ratio = 4 times
  • Closing Inventory is 40,000 more than Opening Inventory
The Current Ratio of Manas Ltd. is 2 : 1. Which of the following transactions will reduce the current ratio?
If the operating ratio of Sana Ltd. is 28%, its operating profit ratio will be:
Calculate the amount of Opening Trade Receivables and Closing Trade Receivables from the following information:
Trade Receivables Turnover Ratio = 5 times
Cost of Revenue from Operations = ₹ 8,00,000
Gross Profit Ratio = 20%
Closing Trade Receivables were ₹ 40,000 more than Opening
Cash Sales = \( \frac{1}{4} \) of Credit Sales
From the following information, calculate Interest Coverage Ratio:

Financial Information

ParticularsAmount (₹)
Profit after Tax6,30,000
Tax Rate30%
15% Debentures20,00,000
Equity Share Capital10,00,000
Calculate Opening and Closing Trade Receivables:
Trade Receivables Turnover Ratio = 5 times
Cost of Revenue = \₹ 8,00,000
Gross Profit Ratio = 20%
Closing TR = 40,000 more than Opening
Cash Sales = \( \frac{1}{4} \) of Credit Sales
From the following information, calculate ‘Return on Investment’ :
Shareholders Funds ₹ 16,00,000
10% Debentures ₹ 8,00,000
Current Liabilities ₹ 2,00,000
Current Assets ₹ 5,00,000
Non-Current Assets ₹ 21,00,000
Net profit after tax was ₹ 3,00,000 and the tax amounted to ₹ 1,00,000.
Ratios that are calculated for measuring the efficiency of operations of the business based on effective utilization of resources are known as _______
Calculate Trade Receivables Turnover Ratio from the following data:
  • Total Revenue from Operations: ₹4,00,000
  • Closing Trade Receivables: ₹1,00,000
  • Excess of Closing Trade Receivables over Opening: ₹40,000
  • Cash Revenue = 25% of Credit Revenue
This ratio determines the number of times stock is converted into revenue from operations during the accounting period under consideration.
When Current Ratio is 4 : 1, Current Assets are rupee 60,000 and Quick Ratio is 2.5 : 1, the amount of ‘Inventory’ will be:
From the following information, calculate the Working Capital Turnover Ratio: 
Gross Profit Ratio -\( 25\% \)
Gross Profit - rupee 5,00,000 
Shareholders' Funds - rupee 25,00,000 
Non-current Liabilities - rupee 8,00,000 
Non-current Assets - rupee 23,00,000 
Which type of software package is suitable for an organization where the volume of accounting transactions is very low and adaptability is very high?
Depreciation is generated from which of the following Accounting information system?
Total Assets: rupee 3,00,000
Non-current Assets: rupee 2,60,000
Non-current Liabilities: rupee 80,000
Shareholders' Funds: rupee 2,00,000
Current ratio calculated on the basis of the above information will be: