From current assets which of the following items is/are excluded while calculating working capital turnover ratio?

Inventories & Prepaid Expenses

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Loose Tools

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Stores & Spares

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Both B and C

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Solution

The correct option is D Both B and C
Loose tools and store & spares are excluded from current assets while calculating working capital turnover ratio.

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Similar questions

Q. Calculate Working Capital Turnover Ratio from the following information:
Revenue from Operations ₹ 30,00,000; Current Assets ₹ 12,50,000; Total Assets ₹ 20,00,000; Non-current Liabilities ₹ 10,00,000, Shareholders' Funds ₹ 5,00,000.

Calculate Working Capital Turnover Ratio from the following information :

$\begin{matrix} Rs. Current Assets & 1, 80, 000 Current Liabilities & 30, 000 Cost of Revenue from Operations & 10, 00, 000 Gross Profit & 20% of Cost \end{matrix}$

Q. From the following calculate:

(a) Current Ratio; and
(b) Working Capital Turnover Ratio.

		₹
(i)	Revenue from Operations	1,50,000
(ii)	Total Assets	1,00,000
(iii)	Shareholders' Funds	60,000
(iv)	Non-current Liabilities	20,000
(v)	Non-current Assets	50,000

Determine working capital turnover ratio if, current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and revenue from operations is Rs 3,00,000.

Q. From the following information, calculate Working Capital Turnover Ratio:

	₹
Cost of Revenue from Operations (Cost of Goods Sold)	10,00,000
Current Assets	5,00,000
Current Liabilities	3,00,000

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From current assets which of the following items is/are excluded while calculating working capital turnover ratio?

The correct option is D Both B and CLoose tools and store & spares are excluded from current assets while calculating working capital turnover ratio.

The correct option is D Both B and C
Loose tools and store & spares are excluded from current assets while calculating working capital turnover ratio.