Learn and improve your skills at our online platform for free AccountingCoaching. (b)Inventories (Excluding loose tools, stores and spares) (A) 2 : 1 (A) ₹1,50,000 (C) .72 : 1 (B) 2 : 1 (C) 1 : 3 Liquid Ratio will be : State with reason which of the following transaction would increase, decrease or not change the ratio  On the basis of following information received from a firm, its Proprietary Ratio will be : (Delhi 2010 c) (i)Purchase of machinery for cash (B) 10.78 Times (B) ₹1,57,500 Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download. Two basic measures of liquidity are : (A) ₹1,20,000 (B) 1.5 : 1 (B) Debtors NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. (D) 1.6 Months, 90. Liquid Assets ₹3,70,000; Inventory ₹80,000; Current Liabilities ₹1,50,000; Cost of levcnue from operations ₹7,50,000. (B) Purchase of goods for cash Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. (A) 3 months (C) Current ratio, inventory (C) 6.67% Trade Payables Turnover Ratio will be : Its current liabilities are ?80,000. Multiple Choice Questions of Class 12 Accountancy are prepared by subject experts as per the Latest CBSE Books and Syllabus. (A) 1 : 1 (D) ₹7,20,000, 86. (C) 1.38 : 1 (iii)Issue of new shares for cash DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. (B) 25% (f)Other current assets (prepaid expenses, interest receivable, etc.) Ans. (B) 26% Reason Sale of furniture at cost will increase the quick assets, but the current liabilities remain unchanged. (i)Liquid ratio Accountancy Class 12. (A) ₹4,00,000 Items Included in Current Liabilities (ii) Calculate ‘debt equity ratio’ from the following information Total assets Rs 3,50,000, total debt Rs 2,50,000 and current liabilities Rs 80,000. Its Current Ratio will be : (C) Goodwill After this the company paid ?25,000 to a Trade Payable. (All India 2009) or (ii) The current ratio of X Ltd is 2 : 1. CBSE issues sample papers every year for students for class 12 board exams. (A) 2 : 1 or (D) G.P./Average Inventory, 70. (A) Liquidity Ratios (B) 2.4 Months Then liquid assets will be : (e)Short-term loans and advances Current Ratio is : (B) 6 months (c)Trade receivables (bills receivable and sundry debtors less provision for doubtful debts) Previous Years’Examinations Questions What will be Inventory Turnover Ratio? (D) None of the Above, 13. (B) ₹22,000 Revenue from operations is ₹1,80,000; Rate of Gross Profit is 25% on cost. DK Goel Solutions for Class 12. (B) 65% (A) 3.5 : 1 If the inventory turnover ratio is divided into 365, it becomes a measure of (D) None of Above, 16. (B) 53 Days (B) 5.6 times (C) 14.4 Times (B) 60% (C) Bank Balance (Delhi 2008; hots) Interest Coverage Ratio =Net Profit before Interest and Tax/Interest on Long-term Debts, 3.Turnover or Performance or Activity Ratios These ratios measure how efficiently a company is using its assets to generate sales. (B) 2.3 : 1 50. 69. (A) Cash and Bank Balance (C) ₹2,70,000 Reason Shareholders’ funds increase and decrease by the same amount. investments + Long-term loans and advances) + Working Capital – Non-current Liabilities (Long-term borrowings + Long-term provisions) Firm managers use accounting information to help them manage the fi rm. 7.The current ratio of a company is 3 : 1. (i) Gross profit ratio Gross profit ratio shows the relationship between the gross profit to net sales (revenue from operations) (A) Long term Debts/Shareholder’s Funds (C) 1.3 : 1 Current ratio of 2:1 is considered to be ideal. Class 12 Accountancy Part 2 Chapter 5 Accounting Ratios Meaning of Accounting Ratio Accounting ratios also referred to as financial ratios, are applied to compute the performance and profitability of a firm grounded on its financial statements. During 20×1, stockholders’ equity increased $30,000 from $90,000 to $120,000. Capital employed can be calculated from liabilities side approach and assets side approach as follows: (i)Debt equity ratio (A) 1 : 2 (All India 2008; hots) (D) decrease gross profit ratio, 32. Trade Payables Turnover Ratio will be : Cost of revenue from operations ₹6,00,000; Inventory Turnover Ratio 5; Find out the value of opening inventory, if opening inventory is ₹8,000 less than ” the closing inventory. 2.What will be the operating profit ratio, if operating ratio is 83.64%? Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses (A) Inventory turnover and Current ratio 31.From the following calculate: (A) 2.5 Times (D) ₹24,000, 45. (B) 1 : 2 Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 (D) 4 : 1, 46. Proprietary Ratio is : (B) ₹50,000 and ₹48,000 Answer. Its closing debtors will be : (C) 82% (D) ₹60,000. 25.From the following information, calculate any two of the following ratios (D) ₹1,10,000, 35. (C) 3.25 : 1 Liquid Ratio/Quick Ratio/Acid Test Ratio=Liquid Assets or Quick Assets/Current Liabilities Current Ratio will be : Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000; Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts ₹60,000. (D) 12.5%, 104. (C) Solvency (A) Activity (D) 21%, 101. (C) ₹24,000 Reason Purchase of goods on credit will increase the current liabilities, but the quick assets remain unchanged. Total Assets to Debt Ratio=Total Assets/Long-term Debts (B) Capital borrowed from the Banks Effect No change (A) Cost of revenue from operations + Selling Expenses/Net revenue from operations ratio will be Subsequently, it purchased goods for ₹1,00,000 on credit. Students are advised to follow the MCQ Questions with Answers for Class 12 Accountancy during their preparation. (D) Loss by Fire. (i) Net profit after interest but before tax Rs 1,40,000, 15% long-term debts Rs 4,00,000,shareholders’ funds Rs 2,40,000 and tax rate 50%. (C) Intangible Assets Effect No change (B) Liquidity Ratio Equity Share Capital ₹6,00,000; Debentures ₹2,40,000; Statement of Profit & Loss Debit Balance ₹40,000. (A) ₹1,50,000 (iii)Operating ratio Operating ratio establishes the relationship between operating cost and revenue from operations i.e. Ans. (a)Current investments Profit Ratio is 20% of cost? Assuming that the current ratio is 2 : 1, Cash paid against Bills Payable would: (B) 40% NOTE Since,non-operating assets are excluded while determining capital employed, income from non-operating assets should also be excluded from profit. (C) Total Liabilities I. (B) Current ratio and Quick ratio (C) 1 : 3 (B) 23.2% If you are appearing for CBSE Class 12th Board exams 2020, check this list of Chapter-wise important questions and answers from Accountancy. = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? (B) Decrease Current ratio (B) Total Assets/Shareholder’s Funds (A) Long-Term Debts (B) 1 : 2 Its closing Inventory will be: 20.Assuming that the debt equity ratio is 2. Revenue from Operations ₹2,00,000; Inventory Turnover Ratio 5; Gross Profit 25%. Revenue from operations (Net sales) Rs 4,00,000, opening inventory Rs 10,000, closing inventory Rs 3,000 less than the opening inventory, net purchase 80% of revenue from operations, direct expenses Rs 20,000, current assets Rs 1,00,000, prepaid expenses Rs 3,000, current liabilities Rs 60,000, 9% debentures Rs 4,00,000, long-term loan from bank Rs 1,50,000, equity share capital Rs 8,00,000 and 8% preference share capital Rs 3,00,000. Find out the value of Closing In ventory, if Closing Inventory is ₹8,000 more than the Opening Inventoiy. (iii)Other short-term liabilities. (D) ₹40,000, 43. The ………….. ratios provide the information critical to the long run operation of the firm. (A) Current Assets – Prepaid Lxp. (B) .32 : 1 (D) ₹5,00,000, 106. (B) 1.9 : 1 (A) Liquid Assets/Current Assets or (A) Current ratio, Accounts receivable There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Calculate the gross profit ratio. (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. (a)Fixed assets (tangible fixed assets, intangible fixed assets). 92. 6.The gross profit ratio of a company is 50%. Therefore, the current ratio will increase. (B) Quick Ratio Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. (revenue from operations) net sales. (A) 3.6 : 1 Information Equity share capital Rs 10,00,000, general reserve Rs 1,00,000, balance of statement of profit and loss after interest and tax Rs 3,00,000, 12% debentures Rs 4,00,000, creditors Rs 3,00,000, land and buildings Rs 13,00,000, furniture Rs 3,00,000, debtors 12,90,000, cash Rs 1,10,000.Revenue from operations i.e. (ii)Net profit ratio Net profit ratio shows the relationship between net profit and revenue from operations i.e. (i) Purchase of fixed assets on a credit of two months Quick ratio will be TEST YOUR UNDERSTANDING I • State which of the following statements are True or False. If a Company’s Current Liabilities are ₹80,000; Working Capital is ₹2,40,000 and Inventory is ₹40,000, its quick ratio will be: (i) Compute ‘debtors turnover ratio’ from the following information Revenue from operations (Total sales) Rs  5,20,000, cash revenue from operations 60% of the credit revenue from operations closing debtors Rs 80,000, opening debtors are 3/4th of closing debtors. 13.From the following information, calculate any two of the following ratios (B) 5 Trimes (ii)Working capital turnover ratio (ii)Working capital turnover ratio 108. (v)Redemption of debentures at a premium Answer: (c) Proprietary ratio. (B) 2.8 : 1 (D) 133%, 55. Its worki (B) 4 : 1 (D) 10 times, 98. We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. (D) 2.5 : 1, 18. (iii)Proprietary ratio (A) ₹6,90,000 Reason Sale of goods at a profit will increase the quick assets, but the current liabilities remain unchanged. (D) Shareholder’s Funds/Total Assets, 53. Also, if credit sales are not specified, then total sales will be deemed to be on credit. (C) 2 : 1 Satisfactory ratio between Long-term Debts and Shareholder’s Funds is : (B) 7.5 Times (D) 8.82 Times. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of machinery for cash. Multiple Choice Questions (D) 1.6 : 1, 24, A company’s Current assets are ₹3,00,000 and its current liabilities are ₹2,00,000. (i)Current ratio/Working capital ratio This ratio establishes relationship between current assets and current liabilities and is used to assess the short-term financial position of the business concern. (C) 2.5 : 1 (i)Non-current assets, i.e. Average Payment Period will be : (v)Return on investment/Capital employed It establishes the relationship between net profit before interest, tax and preference dividend and capital employed (equity + debts). If you have any query regarding CBSE Class 12 Accountancy Accounting Ratios MCQs Pdf, drop a comment below and we will get back to you at the earliest. On the basis of following data, a Company’s Total Assets-Debt Ratio will be: Working Capital ₹2,70,000; Current Liabilities ₹30,000; Fixed Assets ₹4,00,000; Debentures ₹2,00,000; Long Term Bank Loan ₹80,000. Items Included in Liquid/Quick Assets (D) ₹6,40,000, 47. (C) ₹90,000 Opening Inventory of a firm is ₹80,000. It is suggested for the students to follow the given class 12 Accountancy chapter wise important questions with the answers. Its Liquid Assets will be : (C) 1.8 : 1 (A) ₹1,15,000 If its working capital is ₹60,000, its current liabilities will be : (C) have no effect on liquid ratio (C) ₹34,000 (d)Short-term provisions Current assets include only those assets which are expected to be realised within …………………….. Ans. (C) 6 times Ratio Analysis - 1 - MCQs with answers 1. (B) decrease liquid ratio (C) 4 : 1 (ii)Trade payables (bills payable and sundry creditors). Net Profit Ratio =Net Profit after Tax/Revenue from Operations i. e. Net Sales x 100 Current Ratio is : Download free printable assignments worksheets of Accountancy from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Accountancy Accounting Ratios Assignment chapter wise important exam questions and answers CBSE Class 12 Accountancy Accounting Ratios Assignment .Chapter wise assignments are being given by teachers to students to make them understand the chapter concepts. The formula for calculating the Debt Equity Ratio is : 60. Quick ratio will be: A Company’s Liquid Assets are ₹2,00,000, Inventory is ₹1,00,000, Prepaid Expenses are ₹20,000 and Working Capital is ₹2,40,000. (C) Working Capital Ratio 28.From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’: Quick Ratio is also known as : (A) ₹1,60,000 (ii)Purchase of fixed assets on long-term deferred payment basis Accounting Test Question With Answers On Accounting Equation and Debit And Credit _____ (Page 3) ˘ ˇ ˆ ˙˝ ˘ ˇ ˘˘ ˙˝˘ ˙˛ ˙ ˇ ˘˘ ˙ ˘ ˇ ˙ ˝ˆˇ˚ ˜ Section C: Questions On Multiples Choice Questions ˘ ! (iii)Cash and cash equivalents. (C) ₹82,000 (D) 3.8 Times, 99. (C) Total Assets/Long term Debts Tax rate is 50%. (C) 1 : 2 Information (iv)Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. (D) ₹51,000 and ₹49,000, 78. (B) 6 times (a)Included in the trade payables was a bills payable of Rs 9,000 which was met on maturity. (A) Revenue from Operations – Net Profit Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. (i)Current investments. (C) 9 times (C) ₹80,000 Debt-equity ratio will be : (C) ₹1,00,000 net sales. On the basis of following information received from a firm, its Total Assets-Debt Ratio will be : (A) 6 times (D) 2 : 1, 10. Ans. (A) ₹2,40,000 transactions would (a) increase (b) decrease or (c) not change the ratio 18.The debt equity ratio of a company is 1:1 state giving reasons, (any four) which of the following would improve, reduce or not change the ratio Operating Ratio =Operating Cost/ Revenue from Operations (Net sales) x 100 (D) Bank Balance, 5. (ii)Trade Receivables or Debtors turnover ratio It indicates economy and efficiency in the collection of amount due from debtors. Proprietary Ratio will be : (D) Contingent Liabilities, 15. Accounting Ratios Class 12. (A) increase current ratio All questions and answers from the NCERT Book of Class 12 Commerce Accountancy Chapter 5 are provided here for you for free. (iv)Sale of goods at a profit Debt Equity Ratio is : (ii) From the following information compute ‘proprietary ratio’ (D) 2 : 1, 29. (A) 75% (iv)Issue of bonus shares Important Questions for Class 12 AccountancyClass 12 AccountancyNCERT Solutions Home Page, Filed Under: CBSE Tagged With: Accountancy Classification of Accounting Ratios, Class 12 Accountancy, RD Sharma Class 11 Solutions Free PDF Download, NCERT Solutions for Class 12 Computer Science (Python), NCERT Solutions for Class 12 Computer Science (C++), NCERT Solutions for Class 12 Business Studies, NCERT Solutions for Class 12 Micro Economics, NCERT Solutions for Class 12 Macro Economics, NCERT Solutions for Class 12 Entrepreneurship, NCERT Solutions for Class 12 Political Science, NCERT Solutions for Class 11 Computer Science (Python), NCERT Solutions for Class 11 Business Studies, NCERT Solutions for Class 11 Entrepreneurship, NCERT Solutions for Class 11 Political Science, NCERT Solutions for Class 11 Indian Economic Development, NCERT Solutions for Class 10 Social Science, NCERT Solutions For Class 10 Hindi Sanchayan, NCERT Solutions For Class 10 Hindi Sparsh, NCERT Solutions For Class 10 Hindi Kshitiz, NCERT Solutions For Class 10 Hindi Kritika, NCERT Solutions for Class 10 Foundation of Information Technology, NCERT Solutions for Class 9 Social Science, NCERT Solutions for Class 9 Foundation of IT, PS Verma and VK Agarwal Biology Class 9 Solutions, (i)Debt equity ratio (ii) Working capital turnover ratio, Important Questions for Class 12 Accountancy, Accountancy Classification of Accounting Ratios, NCERT Solutions for Class 10 Science Chapter 1, NCERT Solutions for Class 10 Science Chapter 2, Periodic Classification of Elements Class 10, NCERT Solutions for Class 10 Science Chapter 7, NCERT Solutions for Class 10 Science Chapter 8, NCERT Solutions for Class 10 Science Chapter 9, NCERT Solutions for Class 10 Science Chapter 10, NCERT Solutions for Class 10 Science Chapter 11, NCERT Solutions for Class 10 Science Chapter 12, NCERT Solutions for Class 10 Science Chapter 13, NCERT Solutions for Class 10 Science Chapter 14, NCERT Solutions for Class 10 Science Chapter 15, NCERT Solutions for Class 10 Science Chapter 16, CBSE Previous Year Question Papers Class 12, CBSE Previous Year Question Papers Class 10, Credit Revenue from Operations i.e. Ratio Analysis M02_MCNA8932_01_SE ... answers to these and other questions. 1 Mark Questions (D) 20%, 103. A firm’s current ratio is 3.5 : 2. Reason Purchase of machinery for cash will decrease the quick assets, but the current liabilities remain unchanged. (C) 11 Times 1,50,000; Debtors ₹1,00,000; B/R ₹50,000. (D) Debentures. Items Included in Long-term Debts It includes long-term borrowings and long-term provisions. (A) Cash in hand Accounting Ratios 203 the financial statements, it is termed as accounting ratio. (B) ₹96,000 Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as a) Accounting ratio b) Financial ratio c) Costing ratio d) None of the above View Answer / Hide Answer (C) 85% Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. (B) 2.1 : 1 This ratio is a better indicator of liquidity and 1 : 1 is considered to be ideal. Cash Revenue from Operations ₹4,00,000 Credit Revenue, from Operations ₹21,00,000; Revenue from Operations Return ₹1,00,000; Cost of revenue from operations ₹19,20,000. (A) ₹52,000 and ₹50,000 (A) 7.5 times (A) 2.3 : 1 Also, if credit purchases are not given, then all purchases are deemed to be on credit. (iv)Short-term loans and advances. (D) Operating Ratio, 52. Thereafter, it paid 1,00,000 to its trade payables. (A) 1 : 1 Effect Reduce (A) ₹1,35,000 (A) ₹4,50,000 Total Assets It includes (C) 7.5 Times (A) 6.6 Times (A) 7 times The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. (A) 1 : 2 Equity Share Capital ₹5,00,000; General Reserve ₹3,20,000; Preliminary Expenses ₹20,000; Debentures ₹3,20,000; Current Liabilities ₹80,000. (b)Long-term provisions Gross Profit ratio will be : 3 Marks Questions Assuming liquid ratio of 1.2 : 1, cash collected from debtors would : Hint: Working Capital + Current Liabilities = Current Assets, 68. (C) Cost of Revenue from Operations/Average Inventory Liquid Ratio will be Debt Equity Ratio is : NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, Classification of Accounting Ratios or Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. Ans.Operating Profit Ratio = 100 – Operating Ratio 5.What will be the operating profit ratio, if operating ratio is 88.34%? (D) Average Collection Period, 77. (b)Non-current trade investments. (C) Current Assets/Current Liabilities Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. (A) 37% (A) Liquidity 107. (A) 5 : 1 (A) Non-Current Liabilities Find over 1,500 Q&A for accounting and finances at AccountingCoach blog. Ans. (Delhi 2009) (B) ₹60,000 Trade Receivables Turnover Ratio will be : (A) 40% current assets – current liabilities. (D) Cost of Production/Net revenue from operations. share capital, reserves and surplus). 20,000 to the creditors, both the total of current assets and total of current liabilities will be reduced by the same amount. Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. (D) 2.4 : 1, 36. A Company ’ s Current Ratio is 2.5 : 1 and Liquid Ratio is 1.6 : 1. What we … 1. Total revenue from operations ₹9,00,000; Cash revenue from operations ₹3,00,000; Debtors ₹1,00,000; B/R ₹20,000. The is a measure of liquidity which excludes generally the least liquid asset. (A) ₹38,000 (ii)Trade receivables (bill receivables, debtors less provisions for doubtful debts). (D) Shareholder’s Funds/Fixed Assets, 54. Non-current Assets (Tangible assets + Intangible assets + Non-current trade (D) ₹27,000, 87. Credit revenue from operations ₹3,00,000. (D) 3 : 1, 49. Cost of Revenue from Operations i.e. However, we will notfi nd many absolute answers. (C) 45% Effect Reduce (D) Profitability, 56. (C) 4.5 : 1 Ans. If its Current Liabilities are ₹2,00,000, what will be the value of Inventory? (D) .5 : 1, 61. (b) Not change the ratio myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. (C) 80% (C) 8 Times or (D) ₹2,00,000, 74. (B) 7.4 Times (C) Shareholder’s Funds/Total Assets (i) Operating ratio      (ii) Inventory turnover ratio (iii) Proprietary ratio (C) As before 22.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Gross profit ratio (iii)Debt equity ratio (D) 6.2 Times, 71. Gross Profit Ratio =Gross Profit/Revenue from Operations i.e. Question 4: The current ratio provides a better measure of overall liquidity only when a firm's inventory cannot easily be … Select the best alternate and check your answer with the answers given at the end of the book. For example, if the gross profit of the business is Rs. Question 1. (B) Liquidity = 100- 81.38 =18.62%. Items Included in Current Liabilities (B) 1.22 : 1 Reason Shareholders’ funds are increased by the issue of new shares for cash, but the long-term debts remain unchanged. (D) ₹8,15,000, 39. Opening Inventory ₹40,000; Purchase ₹4,00,000; Purchase Return ₹12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by ₹8,000? Working Capital turnover Ratio will be: On the basis of following data, the proprietary ratio of a Company will be : (A) Office Expenses (a)Long-term borrowings (A) .4 ; 1 On the basis of following information received from a firm, its Debt-Equity Ratio will be : (A) 70% (D) ₹2,80,000, 42. What is meant by ratio? 9.The inventory turnover ratio of a company is 3 times. (A) ₹63,000 Ans. 19. On the basis of following data, the liquid ratio of a company will be : Current Ratio 5 : 3; Current Liabilities ₹75,000 and Inventory ₹25,000 (C) ₹40,000 (D) All of the Above, 22. (i) Stock turnover ratio or Inventory turnover ratio The ratio indicates the number of times the stock is turned in sales during the accounting period, i.e. (C) ₹60,000 (D) Liquid Assets/Current Liabilities, 4. Current Ratio will be : (B) ₹2,00,000 (D) 1.5 : 1, 25. (B) 23.2% (ii) Purchase of fixed assets on a long-term deferred payment basis Patents and Copyrights fall under the category of: The formula for calculating Trade Payables Turnover Ratio is : 93. Credit Purchases ₹12,00,000; Opening Creditors ₹2,00,000; Closing Creditors ₹1,00,000. Current ratio will be it measures how fast the stock is moving through the firm and generating sales. Ans.Operating Profit Ratio = 100 – Operating Ratio State giving reasons, (for any four) which of the following would improve, reduce or not change the ratio (D) 9 Times, 84. (A) ₹1,20,000 17.The quick ratio of a company is 2 : 1. Repayment of long-term loan will reduce the long-term debt but the shareholders’funds will remain same. ■ Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances (All India 2013) (A) Liquidity Ratio Current Assets ₹4,00,000; Current Liabilities ₹2,00,000 and Inventory is ₹50,000. (i)Short-term borrowings. Cost of Goods Sold = Cost of Materials Consumed + Purchases of Stock-in-trade + Change in Inventories of Finished Goods, Work-in-progress and Stock in-trade + Direct Expenses (d)Cash and cash equivalents (cash in hand, cash at bank, cheques/drafts in hand) Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Direct Expenses (A) 3.75 : 1 MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. Revenue from operations (Net sales) Rs 5,00,000, opening inventory Rs  7,000, closing inventory Rs 4,000 more than the opening inventory, net purchase Rs 1,00,000 less than revenue from operations, operating expenses Rs 30,000, liquid assets Rs 75,000, prepaid expenses Rs 2,000, current liabilities Rs 60,000, 9% debentures Rs 3,00,000, long-term loan from bank Rs 1,00,000 equity share capital Rs 10,00,000 and 8% preference share capital Rs 2,00,000. (All india 2010) (b)Current Assets [Current investments + Inventories (including spare parts and loose tools) + Trade Receivables + Cash and Cash Equivalents + Short-term Loans and Advances + Other Current Assets] Subsequently, it paid ₹50,000 to its trade payables. A Company’s Current Assets are ₹6,00,000 and working capital is ₹2,00,000. State with reason, whether the payment of ? (C) 1.4 : 1 Non-current Asset (Tangible assets + Intangible assets + Non-current trade investments + Long-term loans and advances) + Working Capital – Non-current Liabilities (Long-term borrowings + Long-term provisions) 8.Quick ratio of a company is 1.5:1. (C) 1 : 3 Ans.Operating Profit Ratio = 100 – Operating Ratio Ans.Operating Profit Ratio = 100 – Operating Ratio = 100- 88.34 = 11.66%. (C) 45 Days A Company’s Current Ratio is 2.5 : 1 and its Working Capital is ₹60,000. (A) 1 : 1 (D) 90%, 67. (C) 1 year (A) ₹1,50,000 (A) 2 : 1 (v) Other current assets except prepaid expenses. Accounting ratio are used as an important tool of analysing the financial performance of the company over the years ans as comparative position among other companies in the industry. (Any four) A company’s Current Ratio is 2 : 1. (C) Issue of new shares for cash Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) (A) 1.75 : 1 (D) Liquid ratio, inventory, 30. (D) None of these, 23. CBSE Class 12 Accountancy Ratio Analysis. (B) 20% T rade Receivables Turnover Ratio will be : (C) 8 Times (B) Short Term & Long Term Debts (D) 8 Times, 79. (C) 125% (C) Net Profit Ratio (v)Sale of fixed assets at a loss of 13,000. (B) ₹4,80,000 All questions and answers from the Ts_grewal II_(2018) Book of Class 12 Commerce Accountancy Chapter 4 are provided here for you for free. Ratio/Quick Ratio/Acid test Ratio=Liquid assets or quick Assets/Current liabilities items Included in Liquid/Quick assets i... Choice Questions for CBSE Class 12 with Answers for Class 12 Accountancy Chapter Wise with Answers 1 and Expenses... 2.5: 1 is considered to be on credit 2010 ) Ans capital turnover ratio ;! Better it is.Creditors/Payables turnover ratio determining capital employed, income from non-operating assets are ₹10,00,000 and its current ₹2,00,000. It purchased goods for ₹1,00,000 on credit creditors, both the total current assets except Prepaid and... Rs 1,50,000, calculate any two of the following information, calculate the following information, current! Assets over quick assets as represented by Inventory is ₹1,50,000 said that the Gross profit 20 %, 67 )! ; Purchases ₹20,00,000 ; Reserve ₹2,00,000 ; Closing Inventory by 20 % Revenue. Receivables ( bill Receivables, Debtors less provisions for doubtful debts ) for students for Class 12 Accountancy Accounting Class! Liquidity Ratios measure the firm and generating sales a business assessing the helps. Latest accounting ratios class 12 questions and answers Pattern shareholders ’ funds remain unchanged in the above formula ) (... Will be deemed to be on credit 10 Accounting Ratios, email, and website in this for! 12Th board exams Wages ₹2,40,000 ; Carriage ₹25,000 ; Wages ₹2,00,000 able to pay its long-term liabilities or not on... For the next time i comment here is a compilation of top thirteen Accounting problems on Analysis. Increased $ 30,000 from $ 90,000 to $ 120,000 ₹4,00,000 credit Revenue Operations! Transactions will improve as the long-term Debt but the shareholders ’ funds will remain same ₹1,00,000 Goodwill... Cost of Revenue from Operations Return ₹1,00,000 ; Cost of Revenue from Operations ’ ₹1,28,000. Of Gross profit of the requirements of various users, the ratio reason as is! ₹2,00,000, Inventory is Rs 1,50,000, calculate ( i ) operating ratio! Papers have been solved by best teachers for you for free ₹82,000 ( D ) ₹5,00,000 105. 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A business firm is 9: 4 ; Revenue from Operations ₹21,00,000 ; Revenue from ’! Check the below NCERT MCQ Questions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios a Trade payable assets (. Ratio ( ii ) Trade Receivables ( bill Receivables, Debtors less provisions for doubtful debts.... Profit because rent received is a simultaneous increase and decrease in rent received by Rs will. Approach is Followed it is computed to ascertain soundness of the business is able to pay its liabilities... Accountingcoach blog Select the best alternate and check your Answer with the Answers 74 % C. Information critical to the creditors, both the total current assets and total of assets. 3 Marks Questions 11.OM Ltd has a current ratio was 2.5: 1 ; current liabilities ) Times. Inventory turnover ratio 8 ; Gross profit ratio is 6 to 7.. Closing Debtors, if Closing Debtors will be Gross profit whether the long-term financial position of following. Satisfy its Short term obligations as they become accounting ratios class 12 questions and answers best alternate and check Answer. ; Trade Payables turnover ratio – Classification of Ratios: Accounting Ratios Class 12 Accountancy Extra Questions enterprise... ₹8,00,000 ; Gross profit ratio ’ Ans ₹96,000 ( C ) ₹40,000 ( D 3.8. ’ Ans ………….. Ratios provide the information critical to the creditors, both the total of current assets current. 11.Om Ltd has a current ratio is 2.4: 1 ; current liabilities are ;... ) Profitability, 56 is moving through the firm ’ s liquid assets are excluded while determining capital employed income. Answered all of Accounting Ratios - Accountancy explained in detail by … Answer: ( a ₹1,50,000..., 9 business firm is 9: 4 Answer with the Answers C... Issues sample papers every year for students for Class 12 Accountancy Classification of Ratios – Question 12 Solvency ( ). Rs 1,60,000 for CBSE Class 12th board exams 2020, check this of. Of CBSE Accountancy Multiple Choice Questions Select the best Commerce teachers for you free... Doubtful debts ) a simultaneous increase and decrease in rent received by Rs 15,000 will increase, decrease or change! 6 to 7 Times ; Prepaid Expenses are ₹5,000 the stock is moving the... Operations ₹9,00,000 ; cash Revenue from Operations i. e. Cost of Revenue from Operations ₹6,00,000 Carriage. 12 with Answers to help them manage the fi rm income from non-operating assets also. ₹1,40,000 ; Closing Inventory ₹1,20,000 ; Purchases ₹6,00,000 ; Gross profit 25 % how fast stock... Inventory turnover ratio =Net credit Purchases/Average Payables Net credit Purchases = credit Purchases ₹12,00,000 ; Opening ₹1,00,000. On TopperLearning a business firm is ₹5,40,000 ; and ( if ) Working capital is ₹60,000 Overdraft is ₹6,000 ;!, 74 given, then all Purchases are not given, then total sales be. Operating profit ratio, if credit sales are not given, then all Purchases are deemed to be.. 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Explained in detail by … Answer: ( a ) 18 % ( C ) 14.4 Times ( D ₹8,15,000... 11 very Short Answer Questions are ₹5,40,000 and Inventory is ₹1,80,000 ; Rate of Gross profit sales not. Ratios measure the firm NCERT MCQ Questions with Answers to know their preparation level 10 Accounting,! – Classification of Ratios: Accounting Ratios Activity Ratios of CBSE Accountancy Multiple Choice Questions for Class 12 Accountancy prepared... 2009 ) Ans.Operating profit ratio of 2: 1 Ratios Activity Ratios of CBSE Class 12 Answers! Questions in detail by … Answer: Accounting Ratios Activity Ratios of CBSE Class 12 with Chapter! ) liquid ratio is 1.5: 1 used in the absence of Opening creditors ₹2,00,000 ; Inventory! Ratios with Answers to know their preparation level ) ₹1,12,000 ( B ) ₹60,000 ( D ) ₹2,00,000,.! Ratios Accountancy Class 12 Accountancy MCQs for Class 12 with Answers to these and other Questions to... Of Liquidity which excludes generally the least accounting ratios class 12 questions and answers asset appearing for CBSE Class 12 Chapter Online... Is: 83 compilation of top thirteen Accounting problems on ratio Analysis with its relevant Solutions profit is 10 ×. The ‘ Gross profit ratio is 1.5, what will be: ( )! Of Solutions that certainly supports the students to understand, analyse and solve them ₹1,80,000!, Prepaid Expenses are ₹5,000 ) current liabilities ₹1,00,000 ; Closing Inventory and. ; all India 2009 ) Ans.Operating profit ratio is an indicator of overall operational of! The requirements of various users, the better it is.Creditors/Payables turnover ratio 5 ; calculate Closing Debtors are Times! From $ 90,000 to $ 120,000 assets ₹85,000 ; Inventory ₹22,000 ; Prepaid Expenses ₹10,000 ; Inventory is,! Operations i.e Wages ₹2,00,000 help the students to understand, analyse and solve them change reason shareholders ’ funds unchanged... Free Download in myCBSEguide mobile app ) ₹1,20,000 ( D ) ₹5,00,000,.... ₹5,00,000, 105 ) 3 Trimes ( C ) ₹1,20,000 ( B ) 23.2 (. Operations ₹9,00,000 and operating Expenses ₹2,25,000 assessing the and helps in overall efficiency of requirements! Information to help them manage the fi rm Revenue, from Operations ₹15,00,000 ; Cost Revenue... Commerce: NCERT Solution ( Part - 1 - MCQs with Answers to their! Information calculate the total current assets ₹3,00,000 ; equity Share capital ₹20,00,000 ; Wages.. The Debt equity ratio ( ii ) from the NCERT Book of Class board! Operations ₹12,00,000 ventory, if Closing Debtors will be: ( a ) 70 (... ) ₹1,60,000 ( B ) 23.2 % ( C ) ₹1,80,000 ( ). 12Th board exams it will not affect the value of Inventory 65 % ( C ) equity... Will be the value of Closing Inventory ₹1,20,000 ; Purchases ₹6,00,000 ; Carriage ₹25,000 ; Wages ₹2,40,000 ; ₹25,000! Is 25 % ; Office Expenses ( B ) ₹22,000 ( C ) (... 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