transactions would (a) increase (b) decrease or (c) not change the ratio Tax rate is 50%. (D) Liquid Assets/Current Liabilities, 4. (A) ₹45,000 13.From the following information, calculate any two of the following ratios State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. (All India 2012; hots) 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. Effect Improve Reason Shareholders’ funds are increased by the amount of profit on sale of goods, but the long-term debts remain unchanged. Average Collection Period will be : (Delhi 2013) DK Goel Solutions for Class 12 helps the students to study and comprehend the accounting fundamentals which helps them to answer the complex questions in an easy way. 15.On the basis of the following information, calculate (D) 93%, 112. (ii) Current liabilities of a company are Rs 1,60,000. (A) Sale of goods for cash (B) Fixed Assets/Current Assets DK Goel Solutions Accountancy furnishes a wide range of solutions that certainly supports the students to understand, analyse and solve them. Effect Increase (a)Paid rent Rs 3,000 in advance. (D) 90%, 67. (B) 6 times 27.From the following information, calculate any two of the following ratios (i) Net profit ratio (ii) Debt equity ratio (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. 34.From the following information, calculate any two of the following ratios Quick ratio will be Calculate the gross profit ratio. A film’s credit revenue from operations is ₹3,60,000, cash revenue from operations is ₹70,000, Cost of reverse from operations is ₹3,61,200, Its gross profit ratio will be : (D) 3 : 1, 57. 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses ?₹48,000. Non-current Assets (Tangible assets + Intangible assets + Non-current trade 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. 92. (C) 5 : 1 (ii)Trade payables (bills payable and sundry creditors). Ans. (B) Liquid ratio, Accounts receivable (A) 52 Days (i)Debt to Equity ratio It establishes the relationship between long-term debt (external equities) and the equity (internal equities) i.e. Debt Equity Ratio is : Trade Receivables Turnover Ratio will be : Effect No change (D) ₹2,00,000, 74. (B) ₹1,60,000 (B) Liquid Assets (iii) Sale of furniture at cost (All India 2009) MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. 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. = Opening Inventory + Purchases + Direct Expenses – Closing Inventory Equity or Shareholders’ Funds = Equity Share Capital + Preference Share Capital+ Reserves and Surplus Ans. (B) ₹60,000 (A) 11%. (B) 1 : 2 (b)Inventories (Excluding loose tools, stores and spares) (B) 2.25 : 1 (A) ₹38,000 29. (A) ₹1,50,000 (D) Shareholder’s Funds/Fixed Assets, 54. Its worki (i)Gross profit ratio (D) 2 : 1, 6. 100. (C) Issue of Debentures for cash 82. Studying these would positively help the students to score good marks in their upcoming board exams. or 1. 23. (D) Loss by Fire. Its current liabilities are ?80,000. (D) Debentures. (A) ₹1,35,000 (C) 2.33 : 1 (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. Equity Share Capital ₹6,00,000; Debentures ₹2,40,000; Statement of Profit & Loss Debit Balance ₹40,000. (D) 2 : 1, 10. (D) increase gross profit ratio. Effect No change (D) 1.3 : 1, 37. Which of the following is not operating expenses? (D) ₹18,000, 81. (B) 4 : 1 (C) 4.5 : 1 (D) 6 months, 97. (D) 12.5 Times, 72. (ii)Proprietary ratio It establishes the relationship between proprietors’ funds and total assets. (A) Liquidity Ratios Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. Satisfactory ratio between Long-term Debts and Shareholder’s Funds is : Reason Neither the long-term debt nor the shareholders’ funds are affected by selling of furniture at cost. 7.The current ratio of a company is 3 : 1. Save my name, email, and website in this browser for the next time I comment. 50. 6.The gross profit ratio of a company is 50%. (C) Net Profit Ratio (C) 6 times A Company’s Current Ratio is 3 : 1; Current Liabilities are ₹2,50,000; Inventory is ₹60,000 and Prepaid Expenses are ₹5,000. (B) 2 : 1 (D) 1.75 : 1, 20. (D) Profitability Ratio, 3. 33. Which of the following transactions will improve the Current Ratio : (C) Current ratio, inventory Ratio will increase as both the current assets and current liabilities will decrease on the payment of dividend. (D) ₹75,000, 91. Quick Assets do not include (A) 3.6 : 1 (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances (D) All of the Above, 14. (A) 74% On the basis of following data, a Company’s closing debtors will be: Proprietors’ Funds or Shareholders’ Funds Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Effect Improve State whether the long-term loan obtained by the company will improve, decrease or not change the ratio. (B) 7.4 Times (B) ₹1,60,000 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 Also, if credit purchases are not given, then all purchases are deemed to be on credit. (iii)Issue of new shares for cash (C) 8 Times 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. (C) 1 : 3 Reason As there is a simultaneous increase and decrease in current asset, i.e. (ii) The current ratio of X Ltd is 2 : 1. (B) ₹3,60,000 Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Direct Expenses Calculate: ( a ) ₹1,42,500 ( B ) ₹1,00,000 ( C ) (. 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