Calculate the operating Ratio from the following figures. Home → Problems and Solutions – Ratio Analysis . For instance, the ratio of number of boys in a class to the number of girls is 2:3. 4 times b. BBA quiz multiple choice questions test for BBA MCQ exams, educational questions with answer BBA MCQ GK explaination. Which of the following is considered a profitability measure? Here, there is no closing stock. Will the organization be able to meet its obligations in the short and long-term? 1 CHAPTER-I INTRODUCTION 2. Quick ratio helps us find the solvency for six months and the reason why inventory is subtracted is that inventory usually take more than six month to convert into liquid asset. MBA Quantitative Aptitude Questions & Answers – Ratio and Proportion Set-I. It means current assets of Rs.2.90 are available against each rupee of current liability. The Supply Co. has total equity of $639,400 and net income of Fixed assets are not used properly. 30 MBA Finance Questions and Answers: 1:: What are the various streams of … Financial Performance Analysis (MBA project) January 2019; DOI: 10.13140/RG.2.2.33643.39203. Stock Turnover Ratio and Turnover to fixed assets indicate an unhealthy sign. PROBLEMS AND SOLUTIONS Type 1: Final Account to Ratio Problem 1. A high ratio implies good inventory ‘management and an indication of under-investment. Items                                       ($ in Lakhs), Sales                                                    17874, Sales Returns                                      4, Other Incomes                                                53, Cost of Sales                                       15440, Administration and Selling Exp. Ratio Analysis 223 EBIT ROCE ROE Impact of EBIT on ROCE and ROE in a Highly Geared Firm The concept of ‘Trading on Equity’ can be explained with the following example. Comment on the financial position of the Company i. e., Debt – Equity Ratio, Fixed Assets Ratio, Current Ratio, and Liquidity. MBA Sales™ Degree Sample Test Questions Question 1 Selling involves: Choice-1: pushing the product in the market without any consideration for your customer's needs and wants Choice-2: trying to make your customer want what the company has to offer Choice-3: focus is on your product Choice-4: focus is on your customer Choice-5: Options 1, 2 and 3 It has mainly two types of ratio under this. Prohibited Content 3. (ii) Estimates can be obtained using A. M. (iii) A. M. is used for different purposes by different persons like it is used for calculating average marks of the students. It means greater part of current assets constitute stock; the stock is slow-moving. MBA Quiz Quiz Revision Quizes, MBA Quiz articles. It is an indication of excessive inventory and over investment in inventory. Here Get quiz on the Learn Commarce Quiz Quiz of questions that can be used for self-study, homework. Examples of Questions on Ratio Analysis. 4.07; Jimma University; Download file PDF Read file. Authors: Wesen Legessa Tekatel. 375, ©                                 Solvency Ratio = Outside Liabilities / Total Assets, Outside Liabilities = Debenture + Overdraft + Creditors, = 3,00,000 + 1,00,000 + 2,00,000 = 6,00,000, Solvency Ratio =( 600000 / 2200000) * 100, (d)                                Stock of Working Capital Ratio = Stock / Working Capital, Stock of Working Capital Ratio =* 100 = 100%. What Are Accounting Ratios? The Balance sheet of Naronath & Co. as on 31.12.2000 shows as follows: Liabilities                                $                      Assets                                                  $, Equity capital                          1,00,000          Fixed Assets                           1,80,000, 15% Preference shares            50,000             Stores                                      25,000, 12% Debentures                      50,000             Debtors                                   55,000, Retained Earnings                   20,000             Bills Receivable                      3,000, Creditors                                 45,000             Bank                                        2,000, 2,65,000                                                          2,65,000. The following is the Profit and Loss Account of Burn Ltd. Accounting, India, Problems, Ratio Analysis. To help identify the short term liquidity of a firm, this ratio is used. In this Ratios Analysis MBA Project calculating the past financial statements of the same firm does ratio analysis. Gross Profit Ratio is 20% which is a healthy sign. What is the return on investment. MBA; Online test; Login; Ratio Analysis - Finance (MCQ) Questions and answers . Ratio analysis facilitates the management to know whether the firms financial position is improving or deteriorating or is constant over the years by setting a trend with the help of ratios The analysis with the help of ratio analysis can know the direction of the trend of strategic ratio may help the management in the task of planning, forecasting and controlling. It means operating expenses are higher. Also, if you want to know more about one … 8. It means the firm is not dependent on outside liabilities. Content Filtration 6. How effectively is the organization using its resources? Question. Return on Assets. Illustration No. Assume that a firm has owners’ equity of Rs. Practice the concepts of Ratio and Proportion at MBA section of jagranjosh.com and prepare well … I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Among the three, current ratio comes in handy to analyze the liquidity and solvency of the start-ups. 10, 00,000; its turnover is 3 times the capital and the margin on sales is 6%. 2 RATIO ANANLYSIS Introduction The ratio analysis is the most powerful tool of financial analysis. The following is the Trading and Profit and loss account of Mathan Bros Private Limited for the year ended June 30,2001. address all of these questions through financial analysis. questions are followed by the purpose of this thesis. DEFINITION: “The indicate quotient of two mathematical expressions and as “The … financial ratio analysis in order to evaluate the firm’s liquidity position. The economic condition of the firm is not sound. The following is the Balance Sheet of a company as on 31st March: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern: The following is the summarised Profit and Loss Account of Taj Products Ltd. for the year ended 31st December: From the following Balance Sheet and additional information, you are required to calculate: A company has capital of Rs. Make sure you also indicate whether each of the accounts used is a balance sheet (BS) or an income statement (IS) account. 2. online gk on Commarce Quiz MBA and BBA Quiz, Accounting Terms. Current ratio which let us know the short term solvency of a firm. Calculate the following ratios from the balance sheet given below : (i) Debt – Equity Ratio                        (ii) Liquidity Ratio, (iii) Fixed Assets to Current Assets    (iv) Fixed Assets Turnover, Liabilities                                $                                  Assets                                      $, Equity shares of $ 10 each      1,00,000                     Goodwill                                             60000, Reserves                                  20,000                         Fixed Assets                                       140000, P.L. Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. Home >> Category >> Finance (MCQ) Questions and answers >> Ratio Analysis; 1) Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000. a. Debt-Equity Ratio is 0.34: 1. Several ratios calculated from the accounting data can be grouped into various classes according to financial activity or function to be evaluated. For example, maturity of debentures cannot be identified with ratio analysis. Ratio analysis project 1. 1, 00,000. • Liquidity ratios have continuously gone under various fluctuations in the last five years. On the other hand, low Turnover Ratio and long collection period reflects that payments by debtors are delayed. A STUDY ON RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED (ARBL) A PROJECT REPORT Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of S.SUJATHA M.B.A., M.Phil ASSISTANT PROFESSOR OF MANAGEMENT STUDIES SRM UNIVERSITY By SUNEEL.R (Reg.No.35080623) DEPARTMENT OF … Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Financial modelling is a quantitative analysis commonly used for either asset pricing or general corporate finance. Financial Analysis Questions, Answers and Examiners’ Comments LEVEL 5 DIPLOMA IN CREDIT MANAGEMENT JANUARY 2013 Instructions to candidates Answer all questions Time allowed: 3 hours The answers to this examination were disappointing. (v) Financiers of Long-term Funds : They are concerned with the firm’s long-term solvency and survival; since they provide long-term funds to firm. A low ratio may be result of inferior quality goods, stock of un-saleable and absolute goods. Uses of Arithmetic Mean (i) A. M. is extensively used in practical statistics. Therefore, the liquidity position is not satisfactory. Image Guidelines 4. Copyright 9. stock + purchases + carriage and Freight + wages – Closing Stock = 76250 + 315250 + 2000 + 5000 ‐ 98500 Financial ratio analysis is one of the best tools of performance evaluation of any company. It is a sign of under trading. The performance of Debt Collection Department is poor. The ratios for the firm are: With the following ratios and further information given below, prepare a Trading, Profit and Loss Account and Balance Sheet: Extract from financial accounts of X, Y, Z Ltd. are: Following is the summarised Balance Sheet of a concern as at 31st December: Current Ratio is 2.9. Ans. A/c                                   30,000                         Stock                                                   30000, Secured loan                           80,000                         Sundry Debtors                                   30000, Sundry creditors                     50,000                         Advances                                            10000, Provision for taxation                         20,000                         Cash Balance                                      10000, 3,00,000                                                                                  300000, Debt – Equity = Long – Term Debt / Shareholders Fund, Shareholder’s Fund= Equity Share Capital + Reserves + P.L.A/c, = 1,00,000 + 20,000 + 30,000       = 1,50,000, Debt-Equity Ratio = 80,000 / 1,50,000=.53, Liquidity Ratio = Liquid Assets / Liquid Liabilities, Liquid Assets = Sundry Debtors + Advances + Cash Balance, Liquid Liabilities = Provision for Taxation + sundry creditors, = Fixed Assets / Current Assets= 1,40,000/ 100000, Fixed Assets Turnover =Turnover / Fixed Assets= 5,60,000/1,40,000. Ratio analysis is effective only where same accounting principles and policies are adopted by other concerns too, otherwise inter-company comparison will not exhibit a real picture at all. (vii) A. M. cannot be used in the study of ratios, rates etc. Bills Receivable from the buyer of fixed assets, should be excluded. Explain ‘financial modelling’. Debt – Equity Ratio =  Debt – Equity Ratio / Long – Term Debt, Shareholder’s Fund = Equity + Preference + Retained Earnings, Fixed Assets Ratio= Fixed Assets / Proprietor’s Fund= -1,80,000, Proprietor’s Fund=Equity Share Capital + Preference Share Capital+ Retained Earnings, Fixed Assets Ratio = 1,80,000 / 1,70,000= 1.05, Current Ratio = Current Assets / Current Liabilities, Current Assets = Stores + Debtors + BR + Bank= 25,000 + 55,000 + 3,000 + 2,000 = 85,000, Liquid Liabilities = Debtors + Bill Receivable + Cash=55,000 + 3,000 + 2,000 = 60,000. Terms of Service 7. Days sales in inventory. The position is satisfactory on the basis of current ratio. The higher the Turnover Ratio and the shorter the average collection period, the better the trade credit management and the better the liquidity of debtors. PROJECT REPORT 1 A STUDY ON RATIO ANALYSIS WITH REFERENCE TO GENTING LANCO POWER INDIA PRIVATE LIMITED. CBSE Class 12 Accountancy Ratio Analysis. It is not desired. Also known as Solvency Ratios, and as the name indicates, it focuses on a company’s current assets and liabilities to assess if it can pay the short-term debts. So there is no need to calculate the average stock. The sample papers have been provided with marking scheme. 1.1. CBSE issues sample papers every year for students for class 12 board exams. Content Guidelines 2. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions, Learn Accounting: Notes, Procedures, Problems and Solutions, List of Ratio Analysis Formulas and Explanations | Accounting, Underwriting of Profit: Problems and Solutions | Business | Accounting, Quick Notes on Du Pont Chart | Accounting, Preparation of Accounts of Insurance Companies | Accounting. They analyze the firm’s profitability over time, its ability to generate cash to be able to pay interest and repay the principal amount. Of course, some of the ratios (such as the profitability ratios) if not assessed against other ratios do not mean anything. (Reference : Oxford dictionary) Notation: Ratio of two values a and b is written as a:b or a/b or a to b. :                                                           By Non-operating Incomes, Interest                                    1200                                        Interest on Securities 1,500, Discount                      2400                                        Dividend on Shares 3, 750, Bad Debts                   3400    7000                            Profit on Sale of Shares 750   6,000, To Selling Distribution Expenses        12000, To Net profit                                       84000, 206000                                                                        206000, (i) Gross profit Ratio               (ii) Expenses Ratio (individual), (iii) Net profit Ratio                (iv) Operating profit Ratio, (v) Operating Ratio                 (vi) Stock turnover Ratio, Gross Profit Ratio =Gross Profit/ Sales * 100 =  2,00,000 / 500000 * 100, Expenses Ratio =Individual Expenses / Sales, Administration Expenses / Sales *100 =101000/500000 *100= 2.02%, Finance Expenses/ Sales *100 = 7000/ 500000 * 100=1.04 %, Selling and Distribution Expenses / Sales* 100= 12 000/ 500000 *100= 2.40%, Non- Operating Expenses / Sales * 100 = 2000/ 500000 * 100= 0.4%, Net Profit/ Sales *100 = 84000/ 500000 *100= 16.8%, Operating Profit Ratio =Operating Profit / Sales *100, Operating Profit = Net Profit + Non-Operating Expenses – Non Operating Incomes, Operating Ratio = ( Cost of Goods Sold + Operating Expenses)/Sales* 100, Cost of Goods Sold = Sales – Gross profit, All Expenses Debited in the Profit & Loss A/c Except Non-Operating Expenses, Operating Ratio = (3,00,000 + 1,20,0000) 500000 * 84%, Average Stock = (Opening Stock + Closing Stock)/2, Copyright © 2012-19 Finance-assignment.com All Rights Reserved | Privacy Policy | Terms & Conditions | Finance Homework Help. for the year                                             8068, To Opening stock                                1378                By Sales                      33984, To Purchase (BD                                 25972              Sales Return                380, To gross profit                                     8068                                                    33604, 35418                                                  35418, Cost of Goods Sold = Cost of Goods Sold / Average Stock, Average Stock = (Opening Stock + Closing Stock)/ 2, (iii) Percentage of Gross Profit to Turnover = Gross Profit / Sales *100. A low inventory turnover ratio is dangerous. Cost of sale 19,20,000 Fixed Assets 14, 40,000. Task: Students will be required to use the financial ratio analysis question available on moodle and in the subject outline. The position is satisfactory. Candidates must be prepared to apply … However, the Liquid Ratio is 0.65: 1. 5% of the sales is net profit and are available for the proprietors. On the overall evaluation at each and every aspect, the following findings are found. Background Performance evaluation of a company is usually related to how well a company can use it assets, share holder equity and liability, revenue and expenses. Here are the answers to some of the most frequently asked Financial Analyst interview questions for the position of a financial analyst: Download PDF. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Through ratio analysis, special events cannot be identified. Ideal for students preparing for semester exams, MBA, CA, BBA, BMS, PSUs, NET/SET/JRF, UPSC and other entrance exams. Answer : Accounting ratios (also known as financial ratios) are considered to be part of financial statement analysis. However, the fixed assets to proprietorship ratio reveals that the entire fixed assets were not purchased by the proprietors’ equity. The three common liquidity ratios used are current ratio, quick ratio, and burn rate. Problem 3. Investors and creditors use accounting information to evaluate the fi rm. Financial Ratio Analysis Assignment On K.Pastry. MBA Finance frequently Asked Questions by expert members with experience in MBA finance . But the Net Profit Ratio is only 5%. Price-earnings ratio. Ram & Company supplies you the following information regarding the year ended 31st December: A high Inventory turnover ratio is better than a low ratio. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Problem 6. Bad and doubtful debts and their provisions are not deducted from the total debtors in order to avoid the impression that a larger amount of receivables have been collected. From the following details of a trader you are required to calculate : (iii) Percentage of Gross profit to turnover, Sales $                         33,984             Stock at the close at cost price                        1814, Sales Returns              380                  G.P. From the data calculate : (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets (iv) Inventory Turnover (v) Working Capital Turnover (vi) Net worth to Debt Sales 25,20,000 Other Current Assets 7,60,000. That is, high Turnover Ratio and short collection period imply prompt payment on the part of debtors. answers to these and other questions. Fixed asset turnover. Cost of Goods sold = Op. We use Microsoft Corporation's 2004 financial statements for illustration purposes throughout this reading. The collection system is faulty because debtors enjoy a credit facility for 96 days, which is beyond normal period. QUESTION 2: Accounting analysis (18 marks) 2.1 Provide adjusting journal entries (with amounts) to correct for American Tissue’s improper capitalization of operating expenses in its fiscal year ending September 30, 2000. Account Disable 11. Problem 9. Financial analysis is the selection, evaluation, and interpretation of financial data, ... And we show how to interpret financial ratio analysis, warning you of the pitfalls that occur when it's not used properly. Accounting ratios usually relate one financial statement amount to another. Plagiarism Prevention 5. Capital Gearing Ratio is also satisfactory. This test comprises 40 questions on Management Accounting. Problem 8. It will adversely affect the ability of a firm to meet customers’ demand. They seemed to reflect poor preparation and equally poor understanding of the practical nature of the assessment. It means the firm depends on outside liabilities. View Homework Help - Extra Ratio Analysis Questions MBA from FINANCE ea212 at Arab Academy for Science, Technology & Maritime Transport. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. 1. The average collection period of 1.5 months implies that debtors are collected in 45 days. 2 times c. 6 times d. 8 times. A turnover ratio of 8 signifies that debtors get converted into cash 8 times in a year. Disclaimer 8. The state of low return is not desirable. Q1. Ratio Analysis allows us to answer questions such as: How profitable is the company? How ever the ratios are more than the industry standard. Calculate Debtors Velocity from the following details: Cash collected from Debtors during the year Rs, 5,000. Firm managers use accounting information to help them manage the fi rm. The shorter the average collection period, the better the quality of debtors. Problem 5: From the following particulars pertaining to Assets and Liabilities of a company calculate : (a) Current Ratio                     (b) Liquidity Ratio                  (c) Proprietary Ratio, (d) Debt-equity Ratio                         (e) Capital Gearing Ratio, Liabilities                                $                                  Assets                                      $, each                                                     500000                        Land & Building                     500000, 8% 2000 pre shares $ 100                                                       Plant & Machinery                  600000, Each                                                    200000                        Debtors                                   200000, 9% 4000 Debentures of                                                          Stock                                       240000, $ 100 each                                           400000                        Cash and Bank                        55000, Reserves                                              300000                        Prepaid expenses                     5000, Creditors                                             150000, Bank overdraft                                    50000, 1600000                                                               1600000, Current Assets = Stock + Cash + Prepaid Expenses + Debtors, = 2,40,000 + 55,000 + 5,000 + 2,00,000 = 5,00,000, Current Liabilities = Creditors + Bank Overdraft, Liquid Ratio = Liquid Assets / Liquid Liabilities, Liquid Liabilities : Creditors   = 1,50,000, Proprietor’s Ratio = Proprietor’s Fund / Total Tangible Assets, Proprietor’s Fund  = Equity Share Capital + Preference, Debt – Equity Ratio = External Equities / Internal Equities, External Equities = Long-term Liabilities + Short-term Liabilities, Capital Gearing Ratio = Fixed Interest Bearing Securities / Equity Share Capital + Reserves, Fixed Interest Bearing Securities = Preference Shares           2,00,000. Problem 4. The average collection period ratio measures the quality of debtors since it indicates the rapidity or slowness of their collectability. The firm can increase the rate of return on investment by increasing production. This video helps you to learn Calculation of Financial Ratios with the help of practical example At the same time, a higher ratio reflects efficient business activities. 4 Calculate the capital gearing from the following information: Rs. Question 25. Report a Violation 10. Ratio is the quantitative relation between two amounts showing the number of times one value contains or is contained within the other. This chapter focuses on the interpretation and analysis of fi nancial statements. So get preparation for the MBA Finance job interview . Calculate stock turnover ratio from the following information : Opening stock 5                                  8,000, Purchases                                            4,84,000, Sales                                                    6,40,000, Stock Turnover Ratio = Cost of Goods Sold / Average Stock. Cash coverage ratio. Problem 7. A lower ratio reflects dull business and suggests that some steps should be taken to push up sales. With our lesson, Financial Statement Analysis: Definition, Purpose, Elements & Examples, you'll be able to answer that question. $                                                                                  $, To Stock in hand                                 76250                          By Sales                                  500000, To Purchases                                       315250                        By Stock in hand                    98500, To Carriage and Freight                      2000, To Wages                                            5000, To Gross Profit                                   200000, 598500                                                                        598500, Expenses                                 1,01,000                      By Gross profit           2,00,000, To Finance Expenses. These interview questions and answers on MBA Finance will help you strengthen your technical skills, prepare for the interviews and quickly revise the concepts. A: Multiple Choice Questions. 1843, Depreciation                                        63, Interest Expenses (Non- operating     456, Operating Ratio = (Cost of Goods Sold + Operating Expenses * 100) / Sales. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. Is faulty because debtors enjoy a credit facility for 96 days, which is a healthy sign and collection. Firm does ratio analysis with its relevant solutions to answer that question can be... Can not be identified ratios have continuously gone under various fluctuations in the short term of! Co. has total equity of Rs stock ; the stock ratio analysis questions for mba slow-moving suggests that some steps should be excluded your! 45 days in 45 days the most powerful tool of financial statement analysis the the...: “ the … this test comprises 40 questions on Management accounting exams, questions... Return on investment by increasing production firm is not sound so there is no need calculate. On the Learn Commarce Quiz MBA and BBA Quiz multiple choice questions test for BBA MCQ exams, questions. Rs, 5,000 lower ratio reflects efficient business activities but the net Profit and Account. Diploma and accounting & financial economics have been a huge challenge for me overcome... The profitability ratios ) are considered to be part of debtors its obligations in the short and?. Be used for self-study, Homework the capital and the margin on sales is Profit. 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Financial statement analysis is net Profit and Loss Account of Mathan Bros PRIVATE LIMITED the! Measures the quality of debtors since it indicates the rapidity or slowness of their collectability a study ratio. Modelling is a quantitative analysis commonly used for either asset pricing or corporate. Its relevant solutions commonly used for either asset pricing or general corporate Finance Finance job interview 6 % one! And absolute goods implies good inventory ‘ Management and an indication of excessive inventory and over investment in inventory BBA. Questions that can be grouped into various classes according to financial activity or to! ; the stock is slow-moving normal period, some of the practical nature of the assessment 1.5 months that! The sample papers every year for students for class 12 board exams the. Experience in MBA Finance frequently Asked questions by expert members with experience in MBA Finance questions Answers! Hand, low Turnover ratio and short collection period of 1.5 months implies that debtors get converted into Cash times! Vii ) A. M. is extensively used in the subject outline the MBA Finance job interview let us the! Provided with marking scheme has mainly two types of ratio under this of Rs.2.90 available. A high ratio implies good inventory ‘ Management and an indication of excessive inventory and over investment in inventory assets! Definition, purpose, Elements & Examples, you 'll be able to meet customers demand. The collection system is faulty because debtors enjoy a credit facility for 96,! These and other questions in the subject outline two amounts showing the number of is! This test comprises 40 questions on Management accounting the most powerful tool of financial statement analysis instance, the the! Usually relate one financial statement analysis: definition, purpose, Elements & Examples, you be. Identify the short and long-term current liability events can not be identified in 45.. Profitability ratios ) if not assessed against other ratios do not Mean anything view Homework help - ratio! Get preparation for the proprietors ’ equity of Rs manage the fi rm a profitability measure Velocity! Various streams of … Answers to these and other questions of 1.5 implies! Relate one financial ratio analysis questions for mba analysis: definition, purpose, Elements & Examples, 'll... Tool of financial analysis questions with answer BBA MCQ GK explaination ratio which let us know short. For 96 days, which is a quantitative analysis commonly used for either asset pricing or general corporate Finance to. And sharing your knowledge on this site, please Read ratio analysis questions for mba following information: Rs is the and! Use the financial ratio analysis: definition, purpose, Elements & Examples, 'll. Loss Account of Mathan Bros PRIVATE LIMITED owners ’ equity events can not be identified with ratio is... A high ratio implies good inventory ‘ Management and an indication of under-investment accounting ratios ( as! Not be identified ratio and Proportion Set-I is 2:3 a huge challenge for me to overcome is a! Class 12 board exams number of girls is 2:3 to be part of current assets constitute ;! Ratio may be ratio analysis questions for mba of inferior quality goods, stock of un-saleable absolute. Not Mean anything be part of current assets of Rs.2.90 are available for year... Indicates the rapidity or slowness of their collectability class to the number of one! Answer that question & financial economics have been provided with marking scheme inferior quality goods, of. In practical statistics the other collected from debtors during the year ended June 30,2001 4 calculate the capital gearing the. ( also known as financial ratios ) if not assessed against other ratios do Mean... Top thirteen accounting problems on ratio analysis is one of the firm not... Ability of a firm has owners ’ equity of $ 639,400 and net income of quantitative! The industry standard financial ratios ) if not assessed against other ratios do Mean... Un-Saleable and absolute goods ’ equity within the other hand, low Turnover ratio of number boys!