List of top Accountancy Questions on Accounting Ratios asked in CUET (UG)

The current ratio of a firm is 2 : 1. If the firm purchased goods on credit, then how will it affect its current ratio?
From the following details, calculate interest coverage ratio: Net Profit after tax Rs. 1,20,000; 15% Long-term debt 20,00,000; and Tax rate 40%.
Calculate Trade Receivables Turnover Ratio from the following data:
  • Total Revenue from Operations: ₹4,00,000
  • Closing Trade Receivables: ₹1,00,000
  • Excess of Closing Trade Receivables over Opening: ₹40,000
  • Cash Revenue = 25% of Credit Revenue
This ratio determines the number of times stock is converted into revenue from operations during the accounting period under consideration.