working capital turnover ratio class 12

We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. The formula for calculating working capital turnover ratio is.

Working Capital Turnover Ratio Different Examples With Advantages

Accountancy Class 12 Important Questions and Answers are the best resource for students which helps in class 12 board exams.

. Working Capital Turnover Ratio. The questions and answers of how is provision for doubtful debt a part of current liability in inventory turnover ratio and working capital turnover ratio are solved by group of students and teacher of class 12 which is also the largest student community of class 12. A Inventory Turnover Ratio and Working Capital Turnover Ratio.

Meaning of Working Capital Turnover Ratio. Working capital turnover is a ratio comparing the depletion of working capital to the generation of sales over a given period. Debt equity Ratio is 05.

Working capital ratio and working capital turnover ratio c Debt equity ratio and proprietary ratio d Gross profit ratio and operating ratio. Current ratioWorking capital ratio This ratio establishes relationship between current assets and current liabilities and is used to assess the short-term financial position of the business concern. It is a relationship between working capital and revenue from operations.

1 what will be the impact of following transactions. C Liquid Ratio and Current Ratio. Multiple Choice Questions MCQs.

Determining a Good Working Capital Ratio. Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. It is a ratio where firms operations are funded and the corresponding revenue generated from business is calculated.

Working capital turnover ratio is used to measure the efficiency of a company in using its working capital to support the sales. Working Capital Turnover Ratio. Therefore the working capital ratio for XYZ Limited is 50.

B Liquid Ratio and Operating Ratio. A high turnover ratio indicates that management is being extremely efficient in using a firms short-term assets and liabilities to support sales. Accounting Ratios CBSE Notes for Class 12 Accountancy.

The working capital turnover ratio is an effective way that companies use to. Compute the Working Capital Turnover Ratio of the company. Accounting Ratios ignore qualitative factors and are also not comparable if different firms follow different accounting policies.

It is also referred to as the current ratio. Compute working capital turnover ratio from the following information Cash revenue from operations Rs 130000 credit revenue from operations Rs 380000 sales returns Rs 10000 liquid assets Rs 140000 current liabilities Rs. Current assets cash bank trade receivable current assets 200000 300000 50000 current assets 550000 When gross profit is 25 revenue from operations is 125.

Working Capital Turnover Ratio 1. Accounting Ratios MCQ Questions Class 12 Accountancy. Working capital turnover ratio Turnover ratio Class 12.

The working capital turnover ratio measures how well a company is utilizing its working capital to support a given level of sales. The ratio is calculated by dividing current assets by current liabilities. Exercise Q 103 Page 104.

Net sales average working capital working capital turnover ratio 10000000 2000000 50. Calculate Working Capital Turnover Ratio from the following information. 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 is current assets minus current liabilities. Net Working Capital Current Assets excluding Fictitious assets Current liabilities. Here we are providing Class 12 Accountancy Important Extra Questions and Answers Chapter 10 Accounting Ratios.

Please see solved MCQ Questions for Accounting Ratios in Class 12 Accountancy. 200000 and general reserve Rs. Total assets Inventories Cash Sundry debtors Land Plant Total assets 125000 400000 175000 400000 500000 Total assets 1600000.

Total assets turnover ratio 3 Times Working note 1. Using TS Grewal Class 12 solutions Accounting Ratios exercise by students are an easy way to prepare for the exams as they involve solutions arranged chapter-wise also page wise. D Gross Profit Margin and Net Profit Margin.

Accounting Ratios DK Goel Class 12 Accountancy Solutions. A From the following. The two basic measures of operational efficiency of a company are.

Working Capital Turnover ratio 2000000 1000000 2 times. Long Questions for NCERT Accountancy Solutions Part 2 Class 12. Working capital turnover ratio class 12.

The questions involved in TS Grewal Solutions are. Working capital turnover ratio Activityratio class 12 trade payables ratioThis video includesWhat is activity turnover ratioIs current ratio a part. Class 12 Accounting Ratios MCQs Questions with Answers.

Working capital Current assets - Current liabilities Working capital 550000 - 180000 Working capital 370000 Working note 2. Net Working Capital and Revenue from Operations ie Net Sales. It establishes the relationship between.

It shows the number of times a unit of Rupee invested in working capital produces sales. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines. Working capital turnover ratio Classification of Ratios Question 12.

Working capital turnover is a measurement comparing the depletion of working capital used to fund operations and purchase inventory which is then converted into sales revenue for the company. Use the following working capital turnover ratio formula to calculate the working capital turnover ratio. Inventory Turnover Ratio and Working Capital Turnover Ratio b Liquid Ratio and.

From the following information calculate the working capital. Stock turnover ratio or Inventory turnover ratio The ratio indicates the number.

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