841. Stock velocity established a relationship between
A. Cost of goods sold in a given period and the average amount of inventory held during that period.
B. Cost of goods sold in a given period and the average amount of stock held during that period.
C. Both a and b
D. None of the above

842. Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.
A. 31 times
B. 11 times
C. 8 times
D. 32 times

843. 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. 4 times
B. 2 times
C. 6 times
D. 8 times

844. Working capital turnover ratio can be determined by:
A. (Gross Profit/Working capital)
B. (Cost of goods sold/Net sales)
C. (Cost of goods sold/Working capital)
D. None of the above

845. Determine Working capital turnover ratio if, Current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and Cost of goods sold is Rs 3,00,000.
A. 5 times
B. 6 times
C. 3 times
D. 1.5 times

846. Which ratio is considered as safe margin of solvency?
A. Liquid ratio
B. Quick ratio
C. Current ratio
D. None of the above

847. The ideal level of current ratio is
A. 4:2
B. 2:1
C. Both a and b
D. None of the above

848. Current ratio is stated as a crude ratio because
A. It measures only the quantity of current assets
B. It measures only the quality of current assets
C. Both a and b
D. Offerings dimension

849. Stock is considered as a liquid asset as anytime it can be converted into cash immediately.
A. Yes
B. No

850. The ideal level of liquid ratio is
A. 3:3
B. 4:4
C. 5:5
D. All of the above

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