Basic Formulas

Question 1

Current Ratio=______/Current Liabilities

Answer 1

Current Ratio=Current Assets/Current Liabilities

Question 2

Quick Ratio= Quick Asset/_____

Answer 2

Quick Ratio=Quick Assets/Current Liabilities

Question 3

Inventories=CA-____

Answer 3

Inventories=CA-QA

Question 4

CAR=_____/Tot. Capital

Answer 4

CAR=RWA/Tot. Capital

Question 5

Break-Even Point=_______/(Price per unit - Variable Cost Per Unit)

Answer 5

Break-Even Point= Fixed Cost/(Price per unit - Variable Cost Per Unit)

Question 6

DU Point System, Return on Equity=Net Profit Margin_____Leverage Ratio

Answer 6

Return on Equity= Net Profit Margin* Asset Turnover* Leverage Ratio

Question 7

Asset Turnover Ratio= _____/Total Asset

Answer 7

Asset Turnover Ratio=Sales/Total Asset

Question 8

Effective Annual Rate (EAR) =____________

Answer 8

(1+r/n)^n - 1 ; r in %

Question 9

Budget Deficit = ______ - TR

Answer 9

BD= TE - TR

Question 10

Revenue Deficit = RE - ____

Answer 10

RD= RE - RR

Question 11

Fiscal Deficit = TE -TR (except borrowing)

Answer 11

Fiscal Deficit = TE -TR (except borrowing)

Question 12

Primary Deficit = FD - Interest Payment

Answer 12

Primary Deficit = FD - Interest Payment

Question 13

Effective Revenue Deficit = RD - Grants for Capital Assets

Answer 13

Effective Revenue Deficit = RD - Grants for Capital Assets

Question 14

Direct Taxes contains:

Answer 14

Income Tax, Corporation Tax, Wealth Tax

Question 15

Indirect Taxes contains:

Answer 15

GST, Sales, Excise, Service

Question 16

Non Tax Revenue:

Answer 16

Interest Payments, Dividents, Profits from PSU, Fees and Fines

Question 17

Revenue Expenditure:

Answer 17

Salaries, Interest Payments, Pensions, Administrative Costs

Question 18

Capital Receipts:

Answer 18

Disinvestment;

Principle amount received from loans by states

Question 19

Capital Expenditure:

Answer 19

Long Term Investment: Infrastructure, Hospitals;

Loans given to states

Question 20

Index of Industrial Production has 8 core industries, which constitutes 40% of total index, they are:

Answer 20

1. Coal 2. Crude Oil 3. Natural Gas

4. Electricity 5. Refinery Product (Max Weightage) 6.Steel 7. Cement 8. Fertilisers

Question 21

Base Year taken for IIP is:

Answer 21

2011-12

Question 22

The Ministry responsible for the calculation for IIP is:

Answer 22

MoSPI, Ministry of Statistics and Programme Implementation