Finance

circulating

fluctuating

fixed

going

Both ratios are expressed in number of days

Both ratios are expressed in number of times receivables are collected per year

As average collection period increases (decreases) the accounts receivable turnover decreases (increases)

There is a direct and proportional relationship

Liquidity

Solvency

Return

Marketability

Fixed

Total

Current

None of the above

No rules of thumb apply to the interpretation of financial ratios

Financial ratios can indicate areas of potential strength and weakness

Financial ratios are predictive

Financial ratios can serve as screening devices

Cash budget

Capital budget

Pro forma Balance sheet

Pro forma Income statemen

Rs.5 lac

Rs.3 lac

Rs.12 lac

None of these

The firm is selling more inventory

The firm is managing its inventory

The firm is inefficient in the management of inventory

Both (a) and (b)

Write-off of an uncollectible account

Collection of an accounts receivable

Sale of treasury stock

Exercise of the call option on bonds payable