If selling price is fixed 25% above the cost, the Gross Profit ratio is
13%
28%
26%
20%
Overall Profitability ratios are based on
Investments
Sales
Both a and b
None of the above
The ideal level of liquid ratio is
3:3
4:4
5:5
All of the above
Determine Operating ratio, if operating expenses is $60,000, Sales is $ 9,40,000, Sales Return is $ 40,000 and Cost of net goods sold is $ 6,60,000
80%
15%
25%
11%
Quick ratio is 1.8:1, current ratio is 7:1 and current liabilities are $ 60,000. Determine value of stock.
$ 54,000
$60,000
$ 162,000
None of the above
Return on equity capital is calculated on basis of:
Funds of equity shareholders
Equity capital only
Either a or b
None of the above
Which of the following groups use financial accounting information?
Management, employees, shareholders and lenders
Suppliers, customers and competitors
Tax authorities, government and general public
All of the above
Which of the following persons are most likely to use accounting information?
Business owners
Lending Institutions
Suppliers
All of the above