working capital turnover ratio class 12

Cost of Revenue from Operations 300000 Inventory Turnover Ratio 6 Times Find out the value of Opening Inventory if opening inventory is 10000 less than the closing. Working capital Turnover ratio Net salesWorking capital.

Working Capital Turnover Ratio Different Examples With Advantages

The working capital turnover ratio is thus 12000000 2000000 60.

. Compute the Working Capital Turnover Ratio of the company. Multiple Choice Questions Select the best alternate and check your answer with the answers given at the end of the book. The two basic measures of operational efficiency of a company are.

When ratios are calculated on. Net sales Total sales - sales return. If share capital Rs.

130000 380000 10000 500000. Calculate Working Capital Turnover Ratio from the following Answer. Accounting Ratios Class 12 MCQs Questions with Answers.

100000 and total assets RS 2100000. Working capital Current assets - Current liabilities Working capital 550000 - 180000 Working capital 370000 Working note 2. 100000 and total assets RS 2100000.

It shows the number of times a unit of Rupee invested in working capital produces sales. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. Take the Next Step to Invest.

MCQ Questions Class 12 Accountancy Accounting Ratios Question. Ratio It is an arithmetical expression of relationship between two related or interdependent items. D Gross Profit Margin and Net Profit.

Accounting Ratios Class 12 Accountancy MCQs Pdf. NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations. This means that every dollar of working capital produces 6 in revenue.

Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. Read below DK Goel Solutions for Class 12 Chapter 5 Accounting RatiosThese solutions have been designed based on the latest Class 12 DK Goel Accountancy book used by commerce stream students issued for the current year and the questions given in each chapter. Iii Return on Investment.

Working capital Current assets - Current liabilities Working capital 550000 - 180000 Working capital 370000 Working note 2. And if Working capital turnover ratio Ans. Ii Inventory Turnover Ratio.

Net Credit Sales 18 00000. Interest coverage ratio is a solvency ratio. 140000 90000 - 105000 125000.

C Shareholders funds- total assets. Working capital turnover ratio 500000125000 4 times. A Inventory turnover and Current ratio B Current ratio and Quick ratio C Gross Profit ratio and Operating ratio.

This means that for every 1 spent on the business it is providing net sales of 7. 500000 reserve surplus Rs. From the following information calculate the following ratios.

Working capital turnover ratio 1850000370000. A Liquidity Ratios 1. B Liquid Ratio and Operating Ratio.

60000Calculate net credit revenue from operations. It reflects relationship between revenue from operations and net assets capital employed in the business. Multiple Choice Questions MCQs.

Accounting Rati os MCQ Question s Class 12 Acc ountancy with Answer s. Ans d What will be the current ratio of a company whose net working capital is Zero. Two basic measures of liquidity are.

Working capital turnover ratio 5 Times Working note 1. Proprietary or equity ratio is equal to. Putting the values in the formula of working capital turnover ratio we get.

Compute Gross Profit Ratio from the following information. Inventory Turnover Ratio frac 1680000 220000 764 Times. Working capital Current assets - current liabilities.

Grade 12 Accoun tancy will co me in exams and help you to sco re good marks. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. Working Capital Current Assets Current Liabilities 18 00000 5 00000 13 00000.

B Shareholders funds total assets. I Operating profit ratio. 200000 and general reserve Rs.

Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. 500000 reserve surplus Rs. Average Trade Receivables 9 00000.

Meaning of Working Capital Turnover Ratio. Which of the following is not an activity ratio. A Inventory turnover ratio and working capital turnover ratio b Liquid Ratio and Operating Ratio c Liquid Ratio and Current Ratio d Gross Profit Margin and Net Profit Margin.

A 11 b 0 c 15 b Cant say. Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable 420000 90000 52000 420000 142000 296 times d Working Capital Turnover Ratio. Trade receivable turnover ratio 5 times average trade receivables Rs.

Current assets Cash Bank Trade receivable Current assets 200000 300000 50000 Current assets 550000. Working capital Turnover ratio Net Sales Working Capital 420000 60000 7. It is a relationship between working capital and revenue from operations.

Working capital turnover ratio 1850000370000. Accounting Ratios CBSE Notes for Class 12 Accountancy Topic 1. B Interest coverage ratio.

Current assets Cash Bank Trade receivable Current assets 200000 300000 50000 Current assets 550000. A Inventory Turnover Ratio and Working Capital Turnover Ratio. If share capital Rs.

Working capital turnover ratio 5 Times Working note 1. 200000 and general reserve Rs. A Shareholders fun ds total assets.

Exercise Q 103 Page 104. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams. A Inventory turnover ratio B Interest coverage ratio C Working capital turnover ratio D Trade receivables turnover ratio Answer.

Trade Receivables Turnover Ratio. MCQ Questions for Class 12 Accounting Ratios. MCQ Of Accounting Ratios Class 12 Chapter 10 Question 3.

The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. C Liquid Ratio and Current Ratio. I Compute debtors turnover ratio from the following information Revenue from operations Total sales Rs 520000 cash revenue from operations 60 of the credit revenue from operations closing debtors Rs 80000 opening debtors are 34th of closing debtors.

Important Questions For Cbse Class 12 Accountancy Classification Of Accounting Ratios