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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Working Capital Turnover Ratio: Cost of Revenue from Operations (Cost of Goods Sold) ₹10,00,000; Current Assets ₹5,00,000; Current Liabilities ₹3,00,000.
Working Capital = Current Assets − Current Liabilities = 5,00,000 − 3,00,000 = ₹2,00,000
Working Capital Turnover Ratio = Cost of Revenue from Operations ÷ Working Capital = 10,00,000 ÷ 2,00,000 = 5 times
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.116 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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