1351. There is deterioration in the managment of working capital of XYZ ltd. What does it refer to ?
A. That the capial employed has reduced
B. That the profitability has gone up
C. That debtor’s collection period has increased *
D. The sales has decreased
1352. Debt to total assets ratio can be improved by________.
A. Borrowing more
B. Issue of debentures
C. Issue of equity shares
D. Redemption of debt *
1353. Ratio of Net income to number of equity shares known as ______.
A. Price Earning Ratio
B. Net Profit Ratio
C. Earnings per Share *
D. Divident per share
1354. A current ratio of less than one means ________.
A. Current liabilites< Current assets
B. Fixed assets > Current assets
C. Current assets <Current liabilities *
D. Shaer capital > Current assets
1355. A firm has capital of 10,00,000 sales of 5,00,000 .Gross profit of 2,00,000 and expenses of 1,00,000 .What is the net profit Ratio?
A. 20% *
B. 50%
C. 10%
D. 40%
1356. Suppliers and creditors of a firm are interested in ________.
A. Profitability position
B. Liquidity position *
C. Market share position
D. Debt position
1357. Which of the following is a measure of Debt service capacity of a firm?
A. Current ratio
B. Acid test Ratio
C. Interest Coverage Ratio *
D. Debtors Turnover
1358. Gross profit ratio for a firm remains same but the net profit ratio is decreasing .The reason for such behavior could be __________.
A. Increase in costs of goods sold
B. If increase in expense *
C. Increase in divident
D. Decrease in sales
1359. Which of the following statements is correct ?
A. A higher receivable turnover is not desirable
B. Interest coverage ratio depends upon tax rate
C. Increase in net profit ratio means increase in sales
D. lower Debt-equity ratio means lower financial risk *
1360. Debt to total assets of a first is .The debt to equity would be ____.
A. 0.80
B. 0.25 *
C. 1.00
D. 0.75