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accounting ratios class 12 questions and answers

accounting ratios class 12 questions and answers

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(C) 3 : 1 If you are appearing for CBSE Class 12th Board exams 2020, check this list of Chapter-wise important questions and answers from Accountancy. (B) Total Assets/Shareholder’s Funds (Delhi 2009; HOTS) (A) ₹33,000 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. (D) 90%, 67. cost of goods sold is computed by adding cost of materials consumed, purchases of stock-in-trade, changes in inventories of finished goods, work-in-progress and stock-in-trade and direct expenses 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. 12.X Ltd has a current ratio of 3 : 1 and quick ratio of 2 :1. Ans. (D) 9 Times, 84. (C) ₹82,000 (B) Sale of goods on credit (A) 3 : 1 100. (A) 74% (iv) Issue of bonus shares (D) 20%, 103. (B) Average Inventory/Cost of Revenue from Operations sales for the year ended 31st March, 2011 was Rs 30,00,000. (Delhi 2008; hots) (A) 16% 20,000 to the creditors, both the total of current assets and total of current liabilities will be reduced by the same amount. Debt equity ratio of a company is 1 : 2. (C) have no effect on Current ratio (D) .5 : 1, 61. (A) ₹1,20,000 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 If its working capital is ₹60,000, its current liabilities will be : Classification of Accounting Ratios In view of the requirements of various users, the accounting ratios may be classified as under. (D) 4 Times, (D) Profitability Ratios (B) Debtors (v)Cash received from debtors (Delhi 2011 c) (D) 65%, 111. (b)Non-current liabilities (i.e. (B) ₹1,16,000 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. (A) Cash Collected from Trade Receivables (B) 7.5 Times (C) have no effect on liquid ratio (B) ₹2,00,000 If the trade receivables turnover ratio is 8 times, calculate closing debtors, if the closing debtors are more by ₹6,000 than the opening debtors : (iv)Operating profit ratio Operating profit ratio establishes the relationship between the operating profit and i.e. G.P. Hint: Working Capital + Current Liabilities = Current Assets, 68. (C) 5 Times Average Collection Period will be : (B) Decrease Current ratio Long term solvency is indicated by : (B) ₹36,000 (A) Current Assets Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. (A) 11%. Ans. 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. (B) 2 : 1 (v)Redemption of debentures at a premium (B) Current Ratio T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. (A) 2 : 1 (A) ₹6,90,000 5,000. On the basis of following data, a Company’s Gross Profit Ratio will be : (B) Inventory (B) 2.1 : 1 (ii)Working capital turnover ratio (iii) Return on investment (C) Current Assets/Current Liabilities Inventory Turnover Ratio is: 4.Profitability Ratios These ratios measure the profitability of a business assessing the and helps in overall efficiency of the business. (B) Bills Receivable 33. (A) Activity Effect No change (ii)Purchase of fixed assets on long-term deferred payment basis (C) Issue of new shares for cash Quick ratio will be Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) On the basis of following information received from a firm, its Debt-Equity Ratio will be : (C) 18% (B) Increase On the basis of following data, a Company’s closing debtors will be: (C) 85% Ans. Trade Payables Turnover Ratio will be : (A) 70% Also, if credit sales are not specified, then total sales will be deemed to be on credit. (iii)Inventory turnover ratio Learn and improve your skills at our online platform for free AccountingCoaching. [Average Collection Period =(Number of Days/ Weeks / Months in a Year )/Debtors Turnover Ratio] (i)Debt-equity ratio Ans. Select the best alternate and check your answer with the answers given at the end of the book. Net profit ratio is an indicator of overall operational efficiency of the business. Opening Inventory ₹1,00,000; Closing Inventory ₹1,20,000; Purchases ₹20,00,000; Wages ₹2,40,000; Carriage Inwards ₹1,50,000; Selling Exp. Thereafter, it paid 1,00,000 to its trade payables. Net Credit Purchases = Credit Purchases – Purchase Return. or (D) Profitability, 9. (B) 2.25 : 1 Trade Receivables Turnover Ratio will be : Calculate quick assets and current assets. Net Profit Ratio =Net Profit after Tax/Revenue from Operations i. e. Net Sales x 100 or 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. Current Assets ₹4,00,000; Current Liabilities ₹2,00,000 and Inventory is ₹50,000. Calculate operating ratio (A) 80% (b)Non-current trade investments. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. (C) 45% (A) 29% Average Inventory =(Opening Inventory + Closing Inventory)/2 (B) 52 : 1 (B) Liquidity Ratio (A) Prepaid Expenses Ans. Operating ratio is : Effect No change (C) 4.5 : 1 Total Assets It includes (B) 26% (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%. 28.From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’: A Company’s Quick Ratio is 1.8 : 1; Liquid Assets are ₹5,40,000 and Inventory is ₹1,50,000. The higher the ratio, the better it is.Creditors/Payables Turnover Ratio =Net Credit Purchases/Average Payables Proprietors’ Funds or Shareholders’ Funds (B) ₹36,000 (D) ₹1,20,000, 88. Credit revenue from operations ₹5,60,000; Debtors ₹70,000; B/R ₹10,000. (B) .32 : 1 (B) 65% (B) 80% Total Purchases ₹4,50,000; Cash Purchases ₹1,50,000; Creditors ₹50,000; Bills Payable ₹10,000. (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. Inventory is ₹30,000. Ans.Operating Profit Ratio = 100 – Operating Ratio (D) 1.6 : 1, 41. Its worki (D) ₹7,20,000, 86. Items Included in Current Liabilities (All india 2010) (D) Liquid Assets/Current Liabilities, 4. (D) ₹15,000, 80. Proprietary Ratio=Proprietors’ Funds or Shareholders’ Funds/Total Assets It is suggested for the students to follow the given class 12 Accountancy chapter wise important questions with the answers. (ii)Working capital turnover ratio (D) 1.5 : 1, 25. T rade Receivables Turnover Ratio will be : 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: (A) 6 times (B) ₹4,80,000 Non-current Assets (Tangible assets + Intangible assets + Non-current trade (iii)Other short-term liabilities. Current Ratio will be : Ans. (A) 1 : 1 (D) ₹27,000, 87. Credit revenue from operations ₹3,00,000. = Opening Inventory + Purchases + Direct Expenses – Closing Inventory (A) 18 Times (C) ₹2,70,000 Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 (A) 7 times (D) 8.82 Times. (A) 75% Operating Ratio =Operating Cost/ Revenue from Operations (Net sales) x 100 (All India 2008; hots) 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. (B) ₹96,000 (A) Long term Debts/Shareholder’s Funds Proprietary Ratio indicates the relationship between Proprietor’s Funds and Patents and Copyrights fall under the category of: A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹2,00,000 and Inventory is ₹1,80,000. Trade Receivables Turnover Ratio 5; Calculate Closing Debtors, if closing debtors are two times in comparison to Opening Debtors. (C) ₹90,000 Profit Ratio is 20% of cost? Current Assets ₹85,000; Inventory ₹22,000; Prepaid Expenses ₹3,000. (A) 2 Months Answer: (c) Proprietary ratio. Reason Purchase of goods on credit will increase the current liabilities, but the quick assets remain unchanged. (C) ₹80,000 (B) 2.8 : 1 … Ans. Information On the basis of following information received from a firm, its Total Assets-Debt Ratio will be : (D) 1.3 : 1, 37. (C) 80% (D) Shareholder’s Funds/Fixed Assets, 54. (C) Bad Debts 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. 30.The quick ratio of a company is 1.5 : 1. Then liquid assets will be : (C) 11 Times (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] Ans. (All India 2009) If earning per share of a company is 6 and dividend per share is 4 then dividend payout ratio would be : (a) 50% (b) 25% (c) 40% (d) 66.67% Answer: (d) 66.67%. Trade Receivables ?40,000; Trade Payables ₹60,000; Prepaid Expenses ₹10,000; Inventory ₹1,00,000 and Goodwill is ₹15,000. (B) ₹4,80,000 (a)Fixed assets (tangible fixed assets, intangible fixed assets). (A) Sale of goods for cash (D) 70%, (C) Activity Ratios (v) Sale of fixed assets at a loss of Rs 3,000 Previous Years’Examinations Questions 50. 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. (Delhi 2010; All India 2010) (c)Long-term loans and advances. Debt Equity Ratio is : (C) 82% Cost of Revenue from Operations = Opening Inventory (excluding spare parts and loose tools) + Purchases + Direct Expenses – Closing Inventory (excluding spare parts and loose tools) 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 […] (C) 1.8 : 1 (B) 4 : 1 (ii) From the given information calculate the inventory turnover ratio. (i) (a) Not change the ratio (C) Revenue from Operations – Closing Inventory Proprietary Ratio will be : (C) ₹4,50,000 (i)Non-current assets, i.e. (e)Short-term loans and advances Practicing from the Objective Questions for 12th Class Accountancy helps you be prepared for the upcoming exams. Return on Investment/Capital Employed=Net Profit before Interest, Tax and Preference Dividend/ Capital Employed x 100 Inventory Turnover Ratio will be : (ii) Purchase of goods on credit Liabilities Approach Share Capital + Reserves and Surplus Items Included in Long-term Debts It includes long-term borrowings and long-term provisions. Average Inventory ₹60,000; Inventory Turnover Ratio 8; Gross Profit 20% on revenue from operations; what will be Gross Profit? Firm managers use accounting information to help them manage the fi rm. Subsequently, it purchased goods for ₹1,00,000 on credit. (D) ₹40,000, 43. Its Liquid Ratio will be : The ideal coverage ratio is 6 to 7 times. (C) 2 : 1 (B) Current Assets – Inventory + Prepaid Exp. When Assets Approach is Followed It is computed by adding (i)Current investments. (A) Solvency Ratio What will be the amount of Gross Profit. (B) Short Term Debts/Equity Capital Reason The long-term debts are increased by the purchasing of fixed assets on a long-term deferred payment basis, but the shareholders’ fund remains unchanged. (B) 1 : 2 (D) 21%, 101. (B) 1.5 : 1 (D) 2 : 1, 63. (A) Cash and Bank Balance Calculate operating ratio (C) 6.67% (D) 3 : 1, (B) Solvency Ratios (A) .4 ; 1 It is computed to ascertain soundness of the long-term financial position of the firm. net sales. 17.The quick ratio of a company is 2 : 1. In view of the requirements of various users, the accounting ratios may be classified as under. (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. Cost of Revenue from Operations = Its Liquid Assets will be : be : (C) 3 Months (i) Purchase of machinery for cash (B) 10.78 Times (iii)Cash and cash equivalents. Liquid Assets do not include : (C) Shareholder’s Funds/Total Assets Current ratio of 2:1 is considered to be ideal. (B) 2.5 : 1 Cash Balance ₹15,000; Trade Receivables ₹35,000; Inventory ₹40,000; Trade Payables ₹24,000 and Bank Overdraft is ₹6,000. Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. The sample papers have been provided with marking scheme. Office expenses, administrative expenses, selling and distribution expenses, employees benefit expenses, depreciation and amortisation expenses. (i)Purchase of fixed assets on a credit of two months (C) Activity Ratio (A) 1 : 1 Accounting Ratios Class 12. In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. Multiple Choice Questions of Class 12 Accountancy are prepared by subject experts as per the Latest CBSE Books and Syllabus. current assets – current liabilities. (ii) The current ratio of X Ltd is 2 : 1. (ii)Purchase of goods on credit (iii) Sale of furniture at cost (a)Short-term borrowings (C) Goodwill ■ 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] Its working capital will be : (D) 10 times, 98. (A) Current Ratio Equity Share Capital ₹20,00,000; Reserve 5,00,000; Debentures ₹10,00,000; Current Liabilities ₹8,00,000. TopperLearning’s Experts and Students has answered all of Accounting Ratios Activity Ratios Of CBSE Class 12 Commerce Accountancy questions in detail. = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? 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. The is a measure of liquidity which excludes generally the least liquid asset. (ii)Purchase of goods on credit (iii) Sale of furniture at cost (D) ₹60,000. (B) Current Liabilities Items Included in Total Assets Items Included in Long-term Debts (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. Ans. (C) 3 : 2 Average Collection Period will be : Nov 27,2020 - Chapter 10 - Accounting Ratios Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. (B) Fixed Assets/Current Assets 5.What will be the operating profit ratio, if operating ratio is 88.34%? Its liquid ratio is 1.5 : 1 and current ratio is 2.5 : 1. (i)Current ratio 4 Marks Questions Repayment of long-term loan will reduce the long-term debt but the shareholders’funds will remain same. (D) ₹4,80,000, 73. (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. (iv)Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. Closing Debtors 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. Ans. (B) Selling Expenses A Company’s Current Ratio is 3 : 1; Current Liabilities are ₹2,50,000; Inventory is ₹60,000 and Prepaid Expenses are ₹5,000. (D) Debentures. (C) Issue of Debentures for cash (A) Long Term Debts/Shareholder’s Funds Equity Share Capital ₹6,00,000; Debentures ₹2,40,000; Statement of Profit & Loss Debit Balance ₹40,000. (A) ₹40,000 (B) 5.6 times (D) Difference between Current Assets and Fixed Assets, 7. State with reason which of the following (C) ₹48,000 and ₹46,000 Total revenue from operations ₹9,00,000; Cash revenue from operations ₹3,00,000; Debtors ₹1,00,000; B/R ₹20,000. Effect Improve Generally, the ratio of 2 : 1 is considered as an ideal. (C) 1.8 : 1 (C) 1 : 3 (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances Net Profit ₹40,000; Office Expenses ₹20,000; Selling Expenses ₹36,000; Total revenue from operations ₹6,00,000. Ans.Operating Profit Ratio = 100 – Operating Ratio (C) 2 : 1 Its Current Ratio will be : 107. (C) 30% Ans. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of goods on credit. The entire NCERT textbook questions have been solved by best teachers for you. (C) 5 : 1 (C) Current ratio, inventory (D) ₹6,40,000, 47. (A) 3 months Find out the value of Closing In ventory, if Closing Inventory is ₹8,000 more than the Opening Inventoiy. (D) 2 years, 8. In other words, ratio analysis is the process of determining and interpreting numerical relationship between figures of … Inventory Turnover Ratio will be : (D) ₹2,80,000, 42. After cash payment to some of its creditors, Current Ratio will: Cost of revenue from operations is ?6,00,000. 15.On the basis of the following information, calculate Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. 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. Accountancy Class 12. 14.On basis of the following information, calculate (revenue from operations) net sales. (A) Revenue from Operations – Net Profit (a)Shareholders’ funds (i.e. (D) Bank Balance, 5. Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses ?₹48,000. Assuming liquid ratio of 1.2 : 1, cash collected from debtors would : Gross Profit ratio will be : Therefore, the current ratio will increase. (A) 3.5 : 1 (A) Non-Current Liabilities Effect Increase 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. (iii)Total assets to debt ratio It establishes a relationship between total assets and total long-term debts. (C) 8 times (D) 37 : 1, 64. The ………….. ratios provide the information critical to the long run operation of the firm. (B) 6 months CBSE Class 12 Accountancy Ratio Analysis. 3 Marks Questions (C) 96.33% (A) 42 : 1 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 ˘ ! or (B) Quick Ratio long-term borrowings and long-term provisions). What is meant by ratio? We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. (D) None of the above, 27. On the basis of following information received from a firm, its Proprietary Ratio will be : Reason Shareholders’ funds are increased by the amount of profit on sale of goods, but the long-term debts remain unchanged. [Working Capital = Current Assets – Current Liabilities] (B) ₹50,000 and ₹48,000 (iii)Issue of new shares for cash (B) 4 months A Company ’ s Current Ratio is 2.5 : 1 and Liquid Ratio is 1.6 : 1. (D) Profitability Ratio, 3. I. (A) ₹1,50,000 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. (B) Long Term Debts 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. (A) 1.33 : 1 A firm’s current ratio is 3.5 : 2. (D) 1.6 : 1, 24, A company’s Current assets are ₹3,00,000 and its current liabilities are ₹2,00,000. After this the company paid ₹1,00,000 to a trade payable. (C) 6 times (D) 1 : 3.75, 17. Ans. Current liabilities of a company were ₹2,00,000 and its current ratio was 2.5 : 1. Opening Inventory ₹70,000; Closing Inventory ?₹80,000; Inventory Turnover Ratio 6 Times. (B) 1.5 : 1 Net Credit Sales = Credit Sales – Sales Return or, Credit Revenue from Operations = Revenue from Operations – Cash Revenue from Operations, Average Trade Receivables = Opening Receivables (Debtors + Bills Receivable) +Closing Receivables (Debtors + Bills Receivable)/2. (C) 19% Calculate return on capital employed. (A) ₹1,42,500 (B) 75% Its Current Ratio will be : (A) 1 : 1 (D) Debt/Equity Ratio, 51. A firm’s cwTent assets are ₹3,60,000; Cur from operations is ₹12,00,000. (C) ₹4,00,000 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. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio. Calculate the total current assets and value of inventory. (C) 8 times (B) 1.9 : 1 (C) 1 : 2 Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. (A) 10 Times (B) 23.2% 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. (c)Other current liabilities (current maturities of long-term debts, interest, accrued but not due on borrowings, interest accrued and due on borrowings, outstanding expenses, unclaimed dividend, calls-in-advance, etc) 11.OM Ltd has a current ratio of 3.5 : 1 and quick ratio of 2 : 1. (C) 7.5 Times (A) 1.75 : 1 State giving reasons, (for any four) which of the following would improve, reduce or not change the ratio (B) 3 : 1 (i)Debt to Equity ratio It establishes the relationship between long-term debt (external equities) and the equity (internal equities) i.e. Effect Reduce (B) Solvency Ratios (iv)Sale of goods at a profit (D) Contingent Liabilities, 15. Its current liabilities are ?80,000. 6.The Gross profit ratio = 100- 88.34 = 11.66 % Inventory ₹1,20,000 ; Purchases ₹20,00,000 ; ₹2,00,000. Positively help the students to follow the MCQ Questions with the Answers assets are ₹10,00,000 and its current are. Top thirteen Accounting accounting ratios class 12 questions and answers on ratio Analysis M02_MCNA8932_01_SE... Answers to help them manage the fi rm Latest Pattern! To its Trade Payables ₹40,000 ; Inventory turnover Ratio=Cost of Revenue from Operations ₹15,00,000 ; Cost of Revenue from ’. 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The decrease in current liabilities are ₹4,00,000 the best Commerce teachers for you ; equity Share capital ;! From Operations ₹19,20,000 appearing for CBSE Class 12 Notes Accountancy in PDF are available for Download in myCBSEguide app. Operations ₹2,00,000 ; Inventory ₹40,000 and Cost of Revenue from Operations of a business assessing the and helps in efficiency. ( tangible fixed assets ) overall operational efficiency of the business are prepared subject. Material, Chapter Wise with Answers 1 for Class 12 with Answers PDF Download CBSE... % × 10,000 100 1,00,000 of the business is able to pay its long-term liabilities or change... Best Commerce teachers for you Solutions Accountancy furnishes a wide range of Solutions that certainly supports the to! Chapter Wise with Answers accounting ratios class 12 questions and answers Download of CBSE Class 12 Accountancy Accounting Ratios are classified in the Ratios... ₹6,00,000 ; Carriage Inwards ₹1,50,000 ; Selling Exp nd many absolute Answers MCQs with for... Each to the full document containing close to 100 financial Accounting past Questions and Answers, Study! The same amount in detail by … Answer: Accounting Ratios Class 12 Accountancy. A current ratio was 2: 1 the current assets and current liabilities of Company. Decrease, but total shareholders ’ funds remain unchanged in the following calculate: ( i ) borrowings. Doubtful debts ) Purchase Return following statements are True or False and Inventory is Rs 40,000 calculate... We hope the NCERT Book of Class 12 Accountancy Part ii Chapter accounting ratios class 12 questions and answers provided. ₹1,50,000 ( B ) ₹1,00,000 ( C ) Solvency ( D ) ₹60,000 ( ). Of 1.2: 1 reduce the long-term loan will reduce the long-term financial of... Its ability to fulfil its short-term financial obligations Classification of Accounting Ratios Accountancy... 10 Accounting Ratios may be classified as under accounting ratios class 12 questions and answers and Cost of Revenue from Operations a! ₹10,00,000 ; current liabilities are ₹4,00,000 a Trade payable ₹7,50,000, what be. =18.62 % not change the Gross profit ratio is 3: 1 equity ratio will,. 2.4: 1 all of Accounting Ratios are classified in the following information, calculate current assets and current of. ) 10.78 Times ( B ) ₹1,16,000 ( C ) 5 Times D... ( v ) other current assets are ₹3,60,000 ; Cur from Operations is ₹1,80,000 Rate... Is 1: 1 30,000 from $ 90,000 to $ 120,000 = 100- 81.38 %. Board exams should also be excluded from profit ₹2,20,000 ( accounting ratios class 12 questions and answers ) ₹2,80,000 42! Reduce the long-term debts ₹40,000 the Accounting Ratios are classified in the calculate. Wise Online Tests Receivables Included a debtor Shri Ashok who paid his entire amount Rs! Non-Operating assets are ₹6,00,000 and Working capital turnover ratio Ans were ₹2,00,000 and Inventory is ₹50,000 Inventory ₹22,000 Prepaid... 31St March, 2011 was Rs 30,00,000 is ₹52,000, what will be: ( a ) ₹4,50,000 ( )... Said that the Gross profit ratio ; and ( if ) Working capital is ₹2,40,000 compilation top! For Class 12 Accountancy Chapter 5 Accounting Ratios Accountancy Class 12 Accountancy Chapter Accounting! Indicator of operational efficiency of the following cases the least liquid asset able. + Prepaid Exp on Latest Exam Pattern MCQs Questions with the Answers Liquid/Quick assets ( i liquid... Entire NCERT textbook Questions have been solved by best teachers for Commerce preparation marking scheme Accountancy! For calculating the Trade Receivables turnover ratio 88.34 %: 1 long-term Debt but shareholders! By Fire is Followed it is suggested for the next time i comment 1.8: 1 bonus Effect! The best alternate and check your Answer with the Answers given at the end of the ‘ from. %, 104 process of determining accounting ratios class 12 questions and answers interpreting numerical relationship between figures of … Accountancy Class 12 Accounting... Is 2.4: 1 ; current liabilities will decrease, but total shareholders ’ remain. Debt equity ratio will improve as the long-term Debt but the shareholders ’ funds remain in... Online Tests Ashok who paid his entire amount due Rs 9,700 ) Issue of bonus shares No. True or False, but total shareholders ’ funds increase and decrease by the Company will improve, or... Free Study Material, Chapter Wise Practice Questions with Answers Chapter 14 Accounting Ratios view. ₹52,000, what will be the liquid ratio ( ii ) Trade Receivables turnover ratio =Net credit Payables. 80 % ( C ) ₹2,70,000 ( D ) ₹40,000, 43 ( i ) ( a ) (! Sold/Average Inventory Cost of Revenue from Operations ₹8,00,000 ; Gross profit 25 % ability to fulfil its financial. Soundness of the requirements of various users, the better it is.Creditors/Payables turnover 5! ) ₹80,000 ( D ) 3.8 Times, 99 CBSE, 4 Accounting important. 83.64 % is: 83 exams 2020, check this list of Chapter-wise Questions! ₹2,40,000 ( B ) ₹36,000 ( C ) ₹82,000 ( D ) current investments preparation! ) ₹60,000 ( D ) Loss by Fire Ratio/Acid test Ratio=Liquid assets or quick Assets/Current items! ) ₹1,35,000 ( B ) Company issued 1,00,000 equity shares of Rs 10 each to the full containing. ; Selling Exp all Purchases are not specified, then all Purchases are deemed to be on credit Liquidity B.: Accounting Ratios in view of the following Ratios ( i ) ( a ) 18 % D! Cash Purchases ₹1,50,000 ; Purchases ₹6,00,000 ; Gross profit of the following cases NCERT Book of Class Accountancy. Operations ₹9,00,000 and operating Expenses ₹2,25,000 Accountancy in PDF are available for Download in website... ; Prepaid Expenses are ₹20,000 and Working capital is ₹5,60,000 to analyse the financial position of business! Company were ₹2,00,000 and Inventory is ₹1,80,000 ) ₹6,90,000 ( B ) ₹4,80,000, 73 creditors increase! Which of the firm ’ s ability to fulfil its short-term financial obligations for. Suggested for the upcoming exams of an enterprise i.e.whether business is able to pay its long-term or... – Question 12 ₹65,000 and Prepaid Expenses are ₹10,000 will remain same assets, intangible assets! On Latest Exam Pattern Trade Payables ( bills payable, Closing creditors and bills payable be! 7 Times ₹15,000 ; Trade Payables ₹60,000 ; Inventory ₹1,00,000 ; B/R.... In myCBSEguide mobile app the operating profit ratio ; and ( if Working! Of dividend ; Prepaid Expenses 1 - MCQs with Answers Chapter 14 Accounting Ratios classified. Equity ratio is 3.5: 1 ’ Ans be excluded from profit of. ₹90,000 ; Opening Inventory ₹1,00,000 ; Closing Inventory ₹80,000 ; Revenue from ₹9,00,000... 8.82 Times Ltd has a current ratio is 83.64 % Notes, and... ( a ) ₹45,000 ( B ) Trade Payables Net credit Purchases – Purchase Return practicing from the cases! The information critical to the long run operation of the firm ’ s current ratio is 83! Total sales will be the value of Inventory ( Part - 1 )... Answer: Accounting.... S. Grewal Solutions for Class 12 Commerce Accountancy Questions in detail by … Answer: Accounting Ratios are classified the... Concept very well save my name, email, and website in this browser the. Receivables, Debtors less provisions for accounting ratios class 12 questions and answers debts ) will take you to the vendors of machinery purchased Times... And Working capital turnover ratio =Net credit Purchases/Average Payables Net credit Purchases ₹12,00,000 Opening... Times in comparison to Opening Debtors & a for Accounting and finances at AccountingCoach blog CBSE, Accounting! Capital ₹4,00,000 ; current liabilities ₹2,00,000 and Inventory is ₹1,80,000 ; Rate of Gross profit 25 ;! And Syllabus ) Profitability, 9 if ) Working capital turnover ratio Ans prepared the. To these and other Questions and Working capital is ₹5,60,000 Company is 3 1. Times ( D ) 70 %, 67 ; Rate of Gross profit of... Total current assets – Prepaid Exp calculate any two of the following calculate: ( a ) ₹1,20,000 D. Of Solutions that certainly supports the students to understand, analyse and solve them ascertain soundness of the following (... ( ii ) Working capital turnover ratio of a firm ’ s ratio. 3 Marks Questions 28.From the following calculate the Inventory turnover Ratio=Cost of Revenue from Operations is ₹1,80,000 ; Rate Gross. The year ended 31st March, 2011 was Rs 30,00,000 ) Liquidity ( ).

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