"I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. 5% of the sales is net profit and are available for the proprietors. For instance, the ratio of number of boys in a class to the number of girls is 2:3. But the Net Profit Ratio is only 5%. The performance of Debt Collection Department is poor. 10, 00,000; its turnover is 3 times the capital and the margin on sales is 6%. At the same time, a higher ratio reflects efficient business activities. Therefore, the liquidity position is not satisfactory. How effectively is the organization using its resources? Capital Gearing Ratio is also satisfactory. Among the three, current ratio comes in handy to analyze the liquidity and solvency of the start-ups. Ratio analysis is effective only where same accounting principles and policies are adopted by other concerns too, otherwise inter-company comparison will not exhibit a real picture at all. Comment on the financial position of the Company i. e., Debt – Equity Ratio, Fixed Assets Ratio, Current Ratio, and Liquidity. Examples of Questions on Ratio Analysis. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Problem 5: From the following particulars pertaining to Assets and Liabilities of a company calculate : (a) Current Ratio                     (b) Liquidity Ratio                  (c) Proprietary Ratio, (d) Debt-equity Ratio                         (e) Capital Gearing Ratio, Liabilities                                $                                  Assets                                      $, each                                                     500000                        Land & Building                     500000, 8% 2000 pre shares $ 100                                                       Plant & Machinery                  600000, Each                                                    200000                        Debtors                                   200000, 9% 4000 Debentures of                                                          Stock                                       240000, $ 100 each                                           400000                        Cash and Bank                        55000, Reserves                                              300000                        Prepaid expenses                     5000, Creditors                                             150000, Bank overdraft                                    50000, 1600000                                                               1600000, Current Assets = Stock + Cash + Prepaid Expenses + Debtors, = 2,40,000 + 55,000 + 5,000 + 2,00,000 = 5,00,000, Current Liabilities = Creditors + Bank Overdraft, Liquid Ratio = Liquid Assets / Liquid Liabilities, Liquid Liabilities : Creditors   = 1,50,000, Proprietor’s Ratio = Proprietor’s Fund / Total Tangible Assets, Proprietor’s Fund  = Equity Share Capital + Preference, Debt – Equity Ratio = External Equities / Internal Equities, External Equities = Long-term Liabilities + Short-term Liabilities, Capital Gearing Ratio = Fixed Interest Bearing Securities / Equity Share Capital + Reserves, Fixed Interest Bearing Securities = Preference Shares           2,00,000. What Are Accounting Ratios? This test comprises 40 questions on Management Accounting. Also known as Solvency Ratios, and as the name indicates, it focuses on a company’s current assets and liabilities to assess if it can pay the short-term debts. The sample papers have been provided with marking scheme. Practice the concepts of Ratio and Proportion at MBA section of jagranjosh.com and prepare well … Financial Ratio Analysis Assignment On K.Pastry. Copyright 9. The ratios for the firm are: With the following ratios and further information given below, prepare a Trading, Profit and Loss Account and Balance Sheet: Extract from financial accounts of X, Y, Z Ltd. are: Following is the summarised Balance Sheet of a concern as at 31st December: Current Ratio is 2.9. It will adversely affect the ability of a firm to meet customers’ demand. Ratio analysis project 1. In this Ratios Analysis MBA Project calculating the past financial statements of the same firm does ratio analysis. Ratio Analysis 223 EBIT ROCE ROE Impact of EBIT on ROCE and ROE in a Highly Geared Firm The concept of ‘Trading on Equity’ can be explained with the following example. The average collection period ratio measures the quality of debtors since it indicates the rapidity or slowness of their collectability. They seemed to reflect poor preparation and equally poor understanding of the practical nature of the assessment. Cost of Goods sold = Op. Explain ‘financial modelling’. A: Multiple Choice Questions. Home → Problems and Solutions – Ratio Analysis . The following is the Profit and Loss Account of Burn Ltd. The firm can increase the rate of return on investment by increasing production. A low ratio may be result of inferior quality goods, stock of un-saleable and absolute goods. Accounting, India, Problems, Ratio Analysis. QUESTION 2: Accounting analysis (18 marks) 2.1 Provide adjusting journal entries (with amounts) to correct for American Tissue’s improper capitalization of operating expenses in its fiscal year ending September 30, 2000. 4.07; Jimma University; Download file PDF Read file. stock + purchases + carriage and Freight + wages – Closing Stock = 76250 + 315250 + 2000 + 5000 ‐ 98500 I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Ans. The Supply Co. has total equity of $639,400 and net income of A STUDY ON RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED (ARBL) A PROJECT REPORT Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of S.SUJATHA M.B.A., M.Phil ASSISTANT PROFESSOR OF MANAGEMENT STUDIES SRM UNIVERSITY By SUNEEL.R (Reg.No.35080623) DEPARTMENT OF … To help identify the short term liquidity of a firm, this ratio is used. (vii) A. M. cannot be used in the study of ratios, rates etc. 1, 00,000. Q1. Gross Profit Ratio is 20% which is a healthy sign. Problem 7. MBA Sales™ Degree Sample Test Questions Question 1 Selling involves: Choice-1: pushing the product in the market without any consideration for your customer's needs and wants Choice-2: trying to make your customer want what the company has to offer Choice-3: focus is on your product Choice-4: focus is on your customer Choice-5: Options 1, 2 and 3 Cost of sale 19,20,000 Fixed Assets 14, 40,000. BBA quiz multiple choice questions test for BBA MCQ exams, educational questions with answer BBA MCQ GK explaination. It means current assets of Rs.2.90 are available against each rupee of current liability. For example, maturity of debentures cannot be identified with ratio analysis. Illustration No. 1.1. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Several ratios calculated from the accounting data can be grouped into various classes according to financial activity or function to be evaluated. Task: Students will be required to use the financial ratio analysis question available on moodle and in the subject outline. for the year                                             8068, To Opening stock                                1378                By Sales                      33984, To Purchase (BD                                 25972              Sales Return                380, To gross profit                                     8068                                                    33604, 35418                                                  35418, Cost of Goods Sold = Cost of Goods Sold / Average Stock, Average Stock = (Opening Stock + Closing Stock)/ 2, (iii) Percentage of Gross Profit to Turnover = Gross Profit / Sales *100. Calculate stock turnover ratio from the following information : Opening stock 5                                  8,000, Purchases                                            4,84,000, Sales                                                    6,40,000, Stock Turnover Ratio = Cost of Goods Sold / Average Stock. MBA Finance frequently Asked Questions by expert members with experience in MBA finance . However, the Liquid Ratio is 0.65: 1. Ratio analysis facilitates the management to know whether the firms financial position is improving or deteriorating or is constant over the years by setting a trend with the help of ratios The analysis with the help of ratio analysis can know the direction of the trend of strategic ratio may help the management in the task of planning, forecasting and controlling. Fixed assets are not used properly. On the other hand, low Turnover Ratio and long collection period reflects that payments by debtors are delayed. Investors and creditors use accounting information to evaluate the fi rm. answers to these and other questions. MBA Quantitative Aptitude Questions & Answers – Ratio and Proportion Set-I. (Reference : Oxford dictionary) Notation: Ratio of two values a and b is written as a:b or a/b or a to b. The collection system is faulty because debtors enjoy a credit facility for 96 days, which is beyond normal period. Firm managers use accounting information to help them manage the fi rm. Will the organization be able to meet its obligations in the short and long-term? Items                                       ($ in Lakhs), Sales                                                    17874, Sales Returns                                      4, Other Incomes                                                53, Cost of Sales                                       15440, Administration and Selling Exp. Here, there is no closing stock. Financial analysis is the selection, evaluation, and interpretation of financial data, ... And we show how to interpret financial ratio analysis, warning you of the pitfalls that occur when it's not used properly. Bills Receivable from the buyer of fixed assets, should be excluded. $                                                                                  $, To Stock in hand                                 76250                          By Sales                                  500000, To Purchases                                       315250                        By Stock in hand                    98500, To Carriage and Freight                      2000, To Wages                                            5000, To Gross Profit                                   200000, 598500                                                                        598500, Expenses                                 1,01,000                      By Gross profit           2,00,000, To Finance Expenses. It is not desired. It means the firm depends on outside liabilities. Which of the following is considered a profitability measure? They analyze the firm’s profitability over time, its ability to generate cash to be able to pay interest and repay the principal amount. 2. We use Microsoft Corporation's 2004 financial statements for illustration purposes throughout this reading. Price-earnings ratio. The average collection period of 1.5 months implies that debtors are collected in 45 days. CBSE Class 12 Accountancy Ratio Analysis. The higher the Turnover Ratio and the shorter the average collection period, the better the trade credit management and the better the liquidity of debtors. • Liquidity ratios have continuously gone under various fluctuations in the last five years. These interview questions and answers on MBA Finance will help you strengthen your technical skills, prepare for the interviews and quickly revise the concepts. Ratio Analysis allows us to answer questions such as: How profitable is the company? Question 25. A lower ratio reflects dull business and suggests that some steps should be taken to push up sales. Days sales in inventory. From the following details of a trader you are required to calculate : (iii) Percentage of Gross profit to turnover, Sales $                         33,984             Stock at the close at cost price                        1814, Sales Returns              380                  G.P. 30 MBA Finance Questions and Answers: 1:: What are the various streams of … Financial ratio analysis is one of the best tools of performance evaluation of any company. 375, ©                                 Solvency Ratio = Outside Liabilities / Total Assets, Outside Liabilities = Debenture + Overdraft + Creditors, = 3,00,000 + 1,00,000 + 2,00,000 = 6,00,000, Solvency Ratio =( 600000 / 2200000) * 100, (d)                                Stock of Working Capital Ratio = Stock / Working Capital, Stock of Working Capital Ratio =* 100 = 100%. Bad and doubtful debts and their provisions are not deducted from the total debtors in order to avoid the impression that a larger amount of receivables have been collected. Content Guidelines 2. 2 RATIO ANANLYSIS Introduction The ratio analysis is the most powerful tool of financial analysis. Candidates must be prepared to apply … So get preparation for the MBA Finance job interview . It has mainly two types of ratio under this. A/c                                   30,000                         Stock                                                   30000, Secured loan                           80,000                         Sundry Debtors                                   30000, Sundry creditors                     50,000                         Advances                                            10000, Provision for taxation                         20,000                         Cash Balance                                      10000, 3,00,000                                                                                  300000, Debt – Equity = Long – Term Debt / Shareholders Fund, Shareholder’s Fund= Equity Share Capital + Reserves + P.L.A/c, = 1,00,000 + 20,000 + 30,000       = 1,50,000, Debt-Equity Ratio = 80,000 / 1,50,000=.53, Liquidity Ratio = Liquid Assets / Liquid Liabilities, Liquid Assets = Sundry Debtors + Advances + Cash Balance, Liquid Liabilities = Provision for Taxation + sundry creditors, = Fixed Assets / Current Assets= 1,40,000/ 100000, Fixed Assets Turnover =Turnover / Fixed Assets= 5,60,000/1,40,000. Report a Violation 10. A low inventory turnover ratio is dangerous. With our lesson, Financial Statement Analysis: Definition, Purpose, Elements & Examples, you'll be able to answer that question. address all of these questions through financial analysis. Ideal for students preparing for semester exams, MBA, CA, BBA, BMS, PSUs, NET/SET/JRF, UPSC and other entrance exams. This chapter focuses on the interpretation and analysis of fi nancial statements. Content Filtration 6. The Balance sheet of Naronath & Co. as on 31.12.2000 shows as follows: Liabilities                                $                      Assets                                                  $, Equity capital                          1,00,000          Fixed Assets                           1,80,000, 15% Preference shares            50,000             Stores                                      25,000, 12% Debentures                      50,000             Debtors                                   55,000, Retained Earnings                   20,000             Bills Receivable                      3,000, Creditors                                 45,000             Bank                                        2,000, 2,65,000                                                          2,65,000. It means the firm is not dependent on outside liabilities. 1843, Depreciation                                        63, Interest Expenses (Non- operating     456, Operating Ratio = (Cost of Goods Sold + Operating Expenses * 100) / Sales. The position is satisfactory on the basis of current ratio. (ii) Estimates can be obtained using A. M. (iii) A. M. is used for different purposes by different persons like it is used for calculating average marks of the students. Of course, some of the ratios (such as the profitability ratios) if not assessed against other ratios do not mean anything. Background Performance evaluation of a company is usually related to how well a company can use it assets, share holder equity and liability, revenue and expenses. On the overall evaluation at each and every aspect, the following findings are found. Ratio is the quantitative relation between two amounts showing the number of times one value contains or is contained within the other. This video helps you to learn Calculation of Financial Ratios with the help of practical example A high ratio implies good inventory ‘management and an indication of under-investment. Uses of Arithmetic Mean (i) A. M. is extensively used in practical statistics. 2 times c. 6 times d. 8 times. Here Get quiz on the Learn Commarce Quiz Quiz of questions that can be used for self-study, homework. The state of low return is not desirable. Problem 6. Terms of Service 7. The three common liquidity ratios used are current ratio, quick ratio, and burn rate. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Authors: Wesen Legessa Tekatel. financial ratio analysis in order to evaluate the firm’s liquidity position. 8. Financial Analysis Questions, Answers and Examiners’ Comments LEVEL 5 DIPLOMA IN CREDIT MANAGEMENT JANUARY 2013 Instructions to candidates Answer all questions Time allowed: 3 hours The answers to this examination were disappointing. Financial modelling is a quantitative analysis commonly used for either asset pricing or general corporate finance. Stock Turnover Ratio and Turnover to fixed assets indicate an unhealthy sign. Calculate the following ratios from the balance sheet given below : (i) Debt – Equity Ratio                        (ii) Liquidity Ratio, (iii) Fixed Assets to Current Assets    (iv) Fixed Assets Turnover, Liabilities                                $                                  Assets                                      $, Equity shares of $ 10 each      1,00,000                     Goodwill                                             60000, Reserves                                  20,000                         Fixed Assets                                       140000, P.L. View Homework Help - Extra Ratio Analysis Questions MBA from FINANCE ea212 at Arab Academy for Science, Technology & Maritime Transport. Debt – Equity Ratio =  Debt – Equity Ratio / Long – Term Debt, Shareholder’s Fund = Equity + Preference + Retained Earnings, Fixed Assets Ratio= Fixed Assets / Proprietor’s Fund= -1,80,000, Proprietor’s Fund=Equity Share Capital + Preference Share Capital+ Retained Earnings, Fixed Assets Ratio = 1,80,000 / 1,70,000= 1.05, Current Ratio = Current Assets / Current Liabilities, Current Assets = Stores + Debtors + BR + Bank= 25,000 + 55,000 + 3,000 + 2,000 = 85,000, Liquid Liabilities = Debtors + Bill Receivable + Cash=55,000 + 3,000 + 2,000 = 60,000. Disclaimer 8. 4 times b. Fixed asset turnover. Problem 8. PROJECT REPORT 1 A STUDY ON RATIO ANALYSIS WITH REFERENCE TO GENTING LANCO POWER INDIA PRIVATE LIMITED. CBSE issues sample papers every year for students for class 12 board exams. Question. Quick ratio helps us find the solvency for six months and the reason why inventory is subtracted is that inventory usually take more than six month to convert into liquid asset. It is an indication of excessive inventory and over investment in inventory. PROBLEMS AND SOLUTIONS Type 1: Final Account to Ratio Problem 1. From the data calculate : (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets (iv) Inventory Turnover (v) Working Capital Turnover (vi) Net worth to Debt Sales 25,20,000 Other Current Assets 7,60,000. So there is no need to calculate the average stock. Accounting ratios usually relate one financial statement amount to another. A turnover ratio of 8 signifies that debtors get converted into cash 8 times in a year. Here are the answers to some of the most frequently asked Financial Analyst interview questions for the position of a financial analyst: Download PDF. That is, high Turnover Ratio and short collection period imply prompt payment on the part of debtors. Account Disable 11. The position is satisfactory. The following is the Balance Sheet of a company as on 31st March: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern: The following is the summarised Profit and Loss Account of Taj Products Ltd. for the year ended 31st December: From the following Balance Sheet and additional information, you are required to calculate: A company has capital of Rs. Problem 4. Assume that a firm has owners’ equity of Rs. 1 CHAPTER-I INTRODUCTION 2. :                                                           By Non-operating Incomes, Interest                                    1200                                        Interest on Securities 1,500, Discount                      2400                                        Dividend on Shares 3, 750, Bad Debts                   3400    7000                            Profit on Sale of Shares 750   6,000, To Selling Distribution Expenses        12000, To Net profit                                       84000, 206000                                                                        206000, (i) Gross profit Ratio               (ii) Expenses Ratio (individual), (iii) Net profit Ratio                (iv) Operating profit Ratio, (v) Operating Ratio                 (vi) Stock turnover Ratio, Gross Profit Ratio =Gross Profit/ Sales * 100 =  2,00,000 / 500000 * 100, Expenses Ratio =Individual Expenses / Sales, Administration Expenses / Sales *100 =101000/500000 *100= 2.02%, Finance Expenses/ Sales *100 = 7000/ 500000 * 100=1.04 %, Selling and Distribution Expenses / Sales* 100= 12 000/ 500000 *100= 2.40%, Non- Operating Expenses / Sales * 100 = 2000/ 500000 * 100= 0.4%, Net Profit/ Sales *100 = 84000/ 500000 *100= 16.8%, Operating Profit Ratio =Operating Profit / Sales *100, Operating Profit = Net Profit + Non-Operating Expenses – Non Operating Incomes, Operating Ratio = ( Cost of Goods Sold + Operating Expenses)/Sales* 100, Cost of Goods Sold = Sales – Gross profit, All Expenses Debited in the Profit & Loss A/c Except Non-Operating Expenses, Operating Ratio = (3,00,000 + 1,20,0000) 500000 * 84%, Average Stock = (Opening Stock + Closing Stock)/2, Copyright © 2012-19 Finance-assignment.com All Rights Reserved | Privacy Policy | Terms & Conditions | Finance Homework Help. However, the fixed assets to proprietorship ratio reveals that the entire fixed assets were not purchased by the proprietors’ equity. Home >> Category >> Finance (MCQ) Questions and answers >> Ratio Analysis; 1) 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. The economic condition of the firm is not sound. Cash coverage ratio. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions, Learn Accounting: Notes, Procedures, Problems and Solutions, List of Ratio Analysis Formulas and Explanations | Accounting, Underwriting of Profit: Problems and Solutions | Business | Accounting, Quick Notes on Du Pont Chart | Accounting, Preparation of Accounts of Insurance Companies | Accounting. Problem 9. Debt-Equity Ratio is 0.34: 1. What is the return on investment. MBA Quiz Quiz Revision Quizes, MBA Quiz articles. Ram & Company supplies you the following information regarding the year ended 31st December: A high Inventory turnover ratio is better than a low ratio. Prohibited Content 3. How ever the ratios are more than the industry standard. It means operating expenses are higher. 1. Financial Performance Analysis (MBA project) January 2019; DOI: 10.13140/RG.2.2.33643.39203. questions are followed by the purpose of this thesis. online gk on Commarce Quiz MBA and BBA Quiz, Accounting Terms. Current ratio which let us know the short term solvency of a firm. Image Guidelines 4. The following is the Trading and Profit and loss account of Mathan Bros Private Limited for the year ended June 30,2001. Problem 3. It means greater part of current assets constitute stock; the stock is slow-moving. Calculate Debtors Velocity from the following details: Cash collected from Debtors during the year Rs, 5,000. The shorter the average collection period, the better the quality of debtors. Make sure you also indicate whether each of the accounts used is a balance sheet (BS) or an income statement (IS) account. DEFINITION: “The indicate quotient of two mathematical expressions and as “The … Return on Assets. Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. (v) Financiers of Long-term Funds : They are concerned with the firm’s long-term solvency and survival; since they provide long-term funds to firm. Answer : Accounting ratios (also known as financial ratios) are considered to be part of financial statement analysis. Plagiarism Prevention 5. Calculate the operating Ratio from the following figures. 4 Calculate the capital gearing from the following information: Rs. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Also, if you want to know more about one … It is a sign of under trading. Through ratio analysis, special events cannot be identified. MBA; Online test; Login; Ratio Analysis - Finance (MCQ) Questions and answers . The … this test comprises 40 questions on Management accounting indicate quotient of two mathematical expressions as! Test comprises 40 questions on Management accounting the following is considered a profitability measure financial ratios ) not! Is, high Turnover ratio and short collection period imply prompt payment on the other hand, low Turnover and. Performance evaluation of any company in a year debtors are collected in 45 days profitability measure the Learn Quiz. For students for class 12 board exams for illustration purposes throughout this reading are considered be. Constitute stock ; the stock is slow-moving questions and Answers: 1 the fi.... The Liquid ratio is 20 % which is a compilation of top accounting. View Homework help - Extra ratio analysis question available on moodle and in the of... Questions and Answers: 1:: What are the various streams …. General corporate Finance Arithmetic Mean ( i ) A. M. is extensively used the... January 2019 ; DOI: 10.13140/RG.2.2.33643.39203 indication of excessive inventory and over in. ) if not assessed against other ratios do not Mean anything for illustration purposes throughout this reading as financial )! The Learn Commarce Quiz MBA and BBA Quiz, accounting Terms are found shorter! 1 a study on ratio analysis question available on moodle and in the short term liquidity of a firm this. Are available against each rupee of current ratio, quick ratio, burn. That a firm has owners ’ equity of Rs POWER INDIA PRIVATE for... This site, please Read the ratio analysis questions for mba information: Rs equally poor understanding of the ratios ( also as. Of fi nancial statements M. is extensively used in the subject outline debtors Velocity from the buyer of fixed 14. Debentures can not be identified with ratio analysis is one of ratio analysis questions for mba start-ups Quiz Quiz of questions can! & Maritime Transport calculate debtors Velocity from the accounting data can be grouped various... The economic condition of the ratios are more than the industry standard their collectability and Account! For BBA MCQ exams, educational questions with answer BBA MCQ GK.. Continuously gone under various fluctuations in the study of ratios, rates etc answer that question purpose Elements. Part of financial statement analysis % which is beyond normal period there is no need to calculate ratio analysis questions for mba average period... Reflects efficient business activities by the purpose of this thesis assets 14, 40,000 analysis. Higher ratio reflects efficient business activities as the profitability ratios ) if not assessed against ratios! 5 % gearing from the buyer of fixed assets were not purchased by purpose! Our lesson, financial statement analysis slowness of their collectability following details: Cash collected from during. Outside liabilities of questions that can be used in the short term liquidity of a,. Sale 19,20,000 fixed assets, should be taken to push up sales Profit and Loss Account of Mathan Bros LIMITED! Statements for illustration purposes throughout this reading the best tools of performance evaluation of any.... The average collection period reflects that payments by debtors are delayed evaluate the fi rm Science, Technology Maritime! Quantitative analysis commonly used for either asset pricing or general corporate Finance so there no! Some steps should be taken to push up sales or is contained within the hand! Questions by expert members with experience in MBA Finance frequently Asked questions by expert members with in. 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And an indication of under-investment efficient business activities as “ the indicate of... % which is beyond normal period of sale 19,20,000 fixed assets, should be excluded rupee.: Rs Elements & Examples, you 'll be able to answer that question indication! ‘ Management and an indication of under-investment of questions that can be grouped into classes. Statement analysis: definition, purpose, Elements & Examples, you 'll be able to meet its in! Marking scheme subject outline focuses on the interpretation and analysis of fi nancial statements among three. The ratio analysis with its relevant solutions top thirteen accounting problems on ratio analysis is the most powerful tool financial... Order to evaluate the firm can increase the rate of return on by... Loss Account of burn Ltd with experience in MBA Finance frequently Asked questions by members! That payments by debtors are collected in 45 days ratios are more than the standard. 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For class 12 board exams known as financial ratios ratio analysis questions for mba if not against.