Explanation

Total Current Assets of the Company were Rs.150,000/= i.e 1.5:1

Current Liabilities were 100,0000/-

So, Net Current assets will be 1500000-1000000= 5,00,000/=

So, therefore, Current Assets are Rs.15,00,000/=

Explanation

A Current Ratio of Less than One means Current Assets < Current Liabilities

Explanation

Explanation

In Inventory Turnover calculation, what is taken in the numerator Cost of Goods Sold

In the first option, when determining the inventory turnover,

the numerator used the cost of goods sold,

while the average value of the inventory for the analyzed period serves as a denominator.

Explanation

An examination of the sources and uses of funds statement is part of:   

Calculations for the balance sheet 

Explanation

Income statement report gives a review on the profitability of a business

An income statement or profit and loss account is one of the financial statements of a company

and shows the company's revenues and expenses during a particular period.

It indicates how the revenues are transformed into the net income or net profit.

Explanation

Assets can be both long-term and short-term, as well as tangible (physical) or intangible (non-physical).

On the other hand, an expense: Is a cost related to the day-to-day running of a business

Explanation

The closing process involves separate entries to close:

The correct sequencing of the entries is:

 revenues 

expenses

 income summary

expenses

Explanation

The formula to calculate profit margin ratio is:

Net income / Net sales

$24,000 / $400,000 = 6%

Formula is: 

Net profit ÷ total revenue  × 100

Explanation

Sales mix:

While the overall sales mix can affect profitability,

CVP analysis assumes that the relative proportions of different products sold (i.e., the sales mix) remain constant within a given period.

If the sales mix changes significantly, the calculations based on the initial assumption will be inaccurate

Sales Mix is not involved in CVP analysis.

Cost consist of fixed and variable cost.

Cost volume profit involves selling price, level of activity,fixed cost but does not include sale mix.

It states how profit change because of change in volume,fixed cost and selling price.