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If the inventory turnover ratio is divid...

If the inventory turnover ratio is divided into 365, it becomes a measure of …………..

A

Sales efficiency

B

Average Age of Inventory

C

Sales Turnover

D

Average Collection Period

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The correct Answer is:
B
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Calculate current assets of a company from the following information: (i) Inventory turnover ratio: 4 Times. (ii) Inventory at the end is Rs 20000 more than inventory in the beginning (iii) Revenue from operatopms i.e Net sales Rs 300000 (iv) gross profit ratio 25% (v) Current Liabilities Rs 40000 (vi) Quick Ratio 0.75

DK GOEL-ACCOUNTING RATIOS-Multiple Choice Questions (Activity Ratios)
  1. Cost of revenue from operations Rs. 6,00,000, Inventory Turnover Ratio...

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  2. Revenue from operations Rs. 2,00,000, Inventory Turnover Ratio 5, Gros...

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  3. If the inventory turnover ratio is divided into 365, it becomes a meas...

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  4. If average inventory is Rs. 50,000 and closing inventory is Rs. 2,000 ...

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  5. Opening Inventory Rs. 50,000, Closing Inventory Rs. 40,000 and cost of...

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  6. Average Inventory Rs. 60,000, Inventory Rs. Turnover Ratio 8, Gross ...

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  7. Opening Inventory Rs. 75,000, Closing Inventory Rs. 1,05,000, Inventor...

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  8. Opening Inventory Rs. 40,000, Purchase Rs. 4,00,000, Purchase Return R...

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  9. The formula for calculating the Trade Receivables Turnover Ratio is :

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  10. Total revenue from operations Rs. 9,00,000, Cash revenue from operati...

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  11. Total revenue from operations Rs. 27,00,000, Credit revenue from opera...

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  12. Credit revenue from operations Rs. 24,00,000, Trade Receivables Turnov...

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  13. A firm makes credit revenue from operations of Rs. 2,40,000 during the...

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  14. Credit revenue from operations Rs. 3,00,000. Trade Receivables Tourno...

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  15. Credit revenue from operations Rs. 5,60,000, Debtors Rs. 70,000, B/R R...

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  16. Credit revenue from operations Rs. 6,00,000, Cash revenue from operat...

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  17. On the basis of following data, a Company's closing debtors will be: ...

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  18. Total credit revenue from operations of a firm is Rs. 5,40,000. Averag...

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  19. The formula for calculating Trade Payables Turnover Ratio is :

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  20. Credit Purchases Rs. 12,00,000, Opening Creditors Rs. 2,00,000, Closin...

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