Question

    Which of the following ratio is derived from the Balance sheet of the company?  

    A.    Debt Equity Ratio

    B.    Quick Ratio

    C.   Stock turnover ratio

    D.   Expense ratio 

    A Only A Correct Answer Incorrect Answer
    B Only C Correct Answer Incorrect Answer
    C A and B Correct Answer Incorrect Answer
    D C and D Correct Answer Incorrect Answer
    E A, B and C Correct Answer Incorrect Answer

    Solution

    Debt Equity ratio (long term debt/Shareholder equity) and Quick Ratio (current assets- Inventory /current liabilities) are calculated from Balance Sheet. While Stock turnover ratio (COGS/average stock) and expense ratio (operating expenses/net sales) is calculated from the P&L statement.

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