Activity Ratio

Q.

Inventory Turnover Ratio is an activity ratio. State true or false.

1. Yes

2. No

Q.

Proprietary Ratio is an activity ratio. True or False.

1. True

2. False

Q. Inventory Turnover Ratio = Cost of Revenue from Operations / ______________.

1. Average Trade Receivables
2. Average Trade Payables
3. Gross Profit
4. Average Inventory

Q.

Why would the inventory turnover ratio be more important when analysing a grocery store than an insurance company?

Q. Working Capital = Total Assets - Current Assets

1. False
2. True

Q. Inventory Turnover Ratio is an activity ratio. State true or false.

1. False
2. True

Q. Average Inventory
= (opening inventory + closing inventory) / 2

1. False
2. True

Q. how to properly differentiate between theoretical amount and actual amount (like which of the two is mentioned in the question) while taking out the % yield and %purity?