721. Working Capital Turnover measures the relationship of Working Capital with:
Fixed Assets
Sales
Purchases
Stock
Correct answer: (A) Fixed Assets
722. In Net Profit Ratio, the denominator is:
Net Purchases
Net Sales
Credit Sales
Cost of goods sold
Correct answer: (B) Net Sales
723. Debt to Total Assets Ratio can be improved by:
Borrowing More
Issue of Debenture
Issue of Equity Shares
Redemption of Debt
Correct answer: (D) Redemption of Debt
724. Which of the following is a measure of Debt Service capacity of a firm?
Current Ratio
Acid Test Ratio
Interest Coverage Ratio
Debtors Turnover
Correct answer: (C) Interest Coverage Ratio
725. Return on Assets and Return on Investment Ratios belong to:
Liquidity Ratios
Profitability Ratios
Solvency Ratios
Turnover
Correct answer: (B) Profitability Ratios
726. If a company issues bonus shares the debt equity ratio will
Remain unaffected
Will be affected
Will improve
none of the above
Correct answer: (C) Will improve
727. Authorised capital of a company is Rs.5 lac,40% of it is paid up.Loss incurred during the year is Rs.50,000. Accumulated loss carried from last year is Rs.2 lac. The company has a Tangible Net Worth of
Nil
Rs.2.50 lac
(-)Rs.50,000
Rs.1 lac
Correct answer: (C) (-)Rs.50,000
728. Quick assets do not include
Govt.bond
Book debts
Advance for supply of raw materials
Inventories
Correct answer: (D) Inventories
729. Financial leverage means
Use of more debt capital to increase profit
High degree of solvency
Low bank finance
None of the above
Correct answer: (A) Use of more debt capital to increase profit
730. Creditors would not be interested in which group of ratios ?