If the cost of goods sold is Rs. 1 Lakh and the opening and closing st – McqOptions

MCQOPTIONS

1.	If the cost of goods sold is Rs. 1 Lakh and the opening and closing stocks are Rs. 20,000 and Rs. 30,000 respectively, what will be the stock turnover ratio ?
A.	3.33 times
B.	4 times
C.	5 times
D.	6 times
Answer» C. 5 times

Discussion

No Comment Found

Related MCQs

If Activity Ratio of a firm is 80% and capacity ratio is 120%, find out its efficiency ratio.
According to the accounting profession, which of the following would be considered a cash-flow item from an "investing" activity?
If the cost of goods sold is Rs. 1 Lakh and the opening and closing stocks are Rs. 20,000 and Rs. 30,000 respectively, what will be the stock turnover ratio ?
Match the following:List IList IIA. Test of activityI. Acid test ratioB. Test of liquidityII. Debt equity ratioC. Test of profitabilityIII. Debtor’s turnover ratioD. Test of solvencyIV. ROI
Assertion (A) : A high operating ratio indicates a favourable position.Reasoning (R) : A high operating ratio leaves a high margin to meet non operating expenses.
Low asset turnover may indicate
Match the items of List I with those of List II and choose the correct code of combinationList IList IIa.Inability to pay interesti)Current ratiob.Liquidity crisisii)Debtor turnover ratioc.Inefficient collection of receivableiii) Interest coverage ratiod. Return of shareholder’s fund being much higher than the overall return on investmentiv)Debts – Equity ratio
A firm has inventory turnover of 3 and cost goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in
A statement of change in financial position typically would NOT disclose the effect of
Cash flow statement is prepared as per accounting standard