Accounting Ratios MCQ Questions Class 12 Accountancy Part II Chapter 5
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. Accounting Ratios MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) The profitability liquidity and solvency of a business can be determined by ——-.
(a) Trend Analysis
(b) Comparative Statement
(c) Balance sheet
(d) Ratio analysis
Ans: (d) Ratio analysis
(2) ——– Provide information for making cross-sectional analysis by comparing the performance with the best industry standard.
(a) Balance sheet
(b) Ratio Analysis
(c) Common size statement
(d) Both (a) and (b)
Ans: (b) Ratio Analysis
(3) —— is one of the example of balance sheet ratio.
(a) Gross profit ratio
(b) Turnover ratio
(c) Current ratio
(d) Solvency ratio
Ans: (c) Current ratio
(4) The firm’s ability to meet its current obligations are measured by ——–.
(a) Current ratio
(b) Liquid ratio
(c) Both (a) and (b)
(d) Profitability Ratio
Ans: (b) Liquid ratio.
(5) Current liabilities include ——–.
(a) Creditors, bills payable
(b) All of these
(c) Short-term provisions
(d) Short-term provisions
Ans: (b) All of these.
(6) ——– is/are included in current asset.
(a) Short-term provisions
(b) Trade receivables
(c) Debtors
(d) Both (b) and (c)
Ans: (d) Both (b) and (c)
(7) A high current ratio signifies ———.
(a) Heavy investment in fixed asset
(b) Low investment in current asset
(c) High investment in current asset
(d) Both (a) and (c)
Ans: (c) High investment in current asset
(8) The standard range for current ratio ——.
(a) 1:1
(b) 2:1
(c) 1:2
(d) None of these
Ans: (b) 2:1
(9) This ratio measures the relationship between long-term loan and equity. Name it —–.
(a) Current ratio
(b) Gross profit ratio
(c) Debt-equity ratio
(d) Quick ratio
Ans: (c) Debt-equity ratio
- In case you have missed:- Previous Chapter MCQ Questions
(10) ——— measures the outcome of risk in business.
(a) Debt-equity ratio
(b) Current ratio
(c) Interest coverage ratio
(d) Both (a) and (c)
Ans: (d) Both (a) and (c)
(11) ——– is a measure of security of interest payable on debts.
(a) Debt equity ratio
(b) Investment turnover ratio
(c) Interest coverage ratio
(d) Current ratio
Ans: (c) Interest coverage ratio.
(12) ——— decreases the debt-equity ratio.
(a) Cash received from debtors
(b) Sale of goods in cash
(c) Both (a) and (b)
(d) Redemption of debentures
Ans: (d) Redemption of debentures
(13) ——- expresses the relationship of shareholder’ fund to net assets of the firm.
(a) Current ratio
(b) Debt-equity ratio
(c) Proprietary ratio
(d) Total asset to debt ratio
Ans: (c) Proprietary ratio
(14) ——– is classified under solvency ratio.
(a) Interest coverage ratio
(b) Debt-equity ratio
(c) Total asset to debt ratio
(d) All of these
Ans: (d) All of these.
(15) X Ltd has a current ratio o 2:5:1 and quick ratio of 2:1. The excess of current asset over quick asset is represented by stock of Rs 26,000. Calculate current asset & current liability of X Ltd. ———-.
(a) Current asset = Rs 1,40,000
Current liab = Rs 52,000
(b) Current asset = Rs 1,50,000
Current liab = Rs 52,000
(c) Current asset = Rs 1,30,000
Current liab = Rs 52,000
(d) Current asset = Rs 2,50,000
Current liability = Rs 50,000
Ans: (c) Current asset = Rs 1,30,000
Current liab = Rs 52,000
(16) “Lack of universally accepted standard levels” is one of the limitation of this financial statement analysis tool identify it. ——–.
(a) Comparative statement
(b) Cash flow statement
(c) Accounting ratio
(d) Common size statement
Ans: (c) Accounting ratio
(17) When the ratios are computed with one variable from balance sheet & another from profit & losses A/c it is called ——-.
(a) Balance sheet ratio
(b) Statement of profit & loss ratio
(c) Composite ratio
(d) Both (a) and (b)
Ans: (c) Composite ratio
- In case you have missed:- Next Chapter MCQ Questions
For more update follow net explanations page