Some Of Questions confuse me...Plz answer
 

Q1. The interest rate measured in terms of goods rather than money is called?

a. compound interest rate b. nominal interest rate
c. real interest rate d. discount rate


Q2. ABC ltd has current ratio of 1.5:1 and net current assets of Rs. 500000. What are the current assets?

a. 5lac b. one million c. 15 lac d. 25 lac


Q3. XYZ ltd has earned 8% return on total assets of rs. 50 lac and has net profit ratio of 5%, find out sales of the firm?
a. 20 % b. 50% c.10% d.40%

1.c
2.c

[QUOTE=mhz99;737867]1.c
2.c[/QUOTE]
Net current asset = CA-CL
500000=1.5x-x
x=500000/0.5= 1000000
Ans = b

[QUOTE=NASSEEM;737838]Q1. The interest rate measured in terms of goods rather than money is called?

a. compound interest rate b. nominal interest rate
c. real interest rate d. discount rate


Q2. ABC ltd has current ratio of 1.5:1 and net current assets of Rs. 500000. What are the current assets?

a. 5lac b. one million c. 15 lac d. 25 lac


Q3. XYZ ltd has earned 8% return on total assets of rs. 50 lac and has net profit ratio of 5%, find out sales of the firm?
a. 20 % b. 50% c.10% d.40%[/QUOTE]

1: The Answer of first question is C. Real Interest rate takes into account the adjustment for the price level of the goods/services.

2: The answer of second question is C:
Q2
Current Assets/Current Liabilities = 1.5
Current Assets=1.5*Current Liabilities
current Assets-Current Liabilities=Net CA = 500000
(1.5*Current Liabilities)-Current Liabilities=Net CA =500000
0.5*Current Liabilities = 500000
Current Liabilities = 1000000
Current Assets = 1.5*CL = [COLOR="Red"][B][I]1500000[/I][/B][/COLOR]

3: The options of question C are really absurd. Total sales come out to be 80 lacs. Not a single options fulfils any criteria. The difference in sales and assets is 60% of assets. Check the options again.
Q3
ROA=Net Income/Total Assets = 8%
Total Assets = 5000000
Net Income=ROA*Total Assets = 400000
Net Profit Ratio=Net Income/Net Sales =5%
Net Sales=Net Income/Net Profit Ratio =[COLOR="Red"][B]8000000[/B][/COLOR]

[QUOTE=Saleha Jamil;777867]Net current asset = CA-CL
500000=1.5x-x
x=500000/0.5= 1000000
Ans = b[/QUOTE]

Read the question again, they asked for current assets and not the current liabilities.

[QUOTE=salmanqureshi;779057]1.C
2.B
commercepk.com[/QUOTE]

Please provide the computations for the question 2 as you said that total liabilities amount to 10 lacs (Option b). I have carried out the calculations in my reply, prove me wrong with your calculations.

[QUOTE=Saleha Jamil;777867]Net current asset = CA-CL
500000=1.5x-x
x=500000/0.5= 1000000
Ans = b[/QUOTE]

Correction: Ans= c
1.5*1000000=1500000