22.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Gross profit ratio (iii)Debt equity ratio (b)Non-current trade investments. (B) 1 : 2 (ii)Debt equity ratio (Delhi 2009) (A) Current Ratio (B) ₹60,000 We hope the given Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios will help you. (A) 6 times Multiple Choice Questions of Class 12 Accountancy are prepared by subject experts as per the Latest CBSE Books and Syllabus. (B) 16 Times (B) 1 : 2 Assuming liquid ratio of 1.2 : 1, cash collected from debtors would : 69. be : Reason Neither the long-term debt nor the shareholders’ funds are affected by selling of furniture at cost. Reason Shareholders’ funds are increased by the issue of new shares for cash, but the long-term debts remain unchanged. Ans. NCERT Solutions CBSE Sample Papers Accountancy Class 12 Accountancy. Quick Assets do not include (C) 2 : 1 (A) ₹1,20,000 (B) Debtors However, we will notfi nd many absolute answers. (iv)Sale of goods at a profit 19. (A) 1 : 2 Working Capital Turnover Ratio=Cost of Revenue from Operations or Revenue from Operations i. e. Net Sales/Working Capital (A) .4 ; 1 (i)Non-current assets, i.e. (i) Purchase of fixed assets on a credit of two months (C) 8 times (D) Current Assets + Inventory – Prepaid Exp. (A) ₹6,90,000 (C) Goodwill Satisfactory ratio between Long-term Debts and Shareholder’s Funds is : (ii) Liquid ratio/Quick ratio/Acid test ratio This ratio establishes relationship between liquid assets and current liabilities and is used to measure the firm’s ability to pay the claims of creditors immediately. (D) 1.6 : 1, 41. Generally, the ratio of 2 : 1 is considered as an ideal. Find out the value of Closing In ventory, if Closing Inventory is ₹8,000 more than the Opening Inventoiy. (D) 12.5 Times, 72. RBSE Class 12 Accountancy Chapter 11 Very Short Answer Questions. (A) ₹33,000 (B) Current Liabilities (D) 4 : 1, 46. (A) Liquidity Average Inventory =(Opening Inventory + Closing Inventory)/2 (A) Inventory turnover and Current ratio (A) 11%. (C) 5 Times (A) ₹4,00,000 (A) ₹38,000 (d)Cash and cash equivalents (cash in hand, cash at bank, cheques/drafts in hand) (D) Goods purchased on credit, 62. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio. (ii)Purchase of fixed assets on long-term deferred payment basis (D) 70%, (C) Activity Ratios Effect No change 24.From the following information, calculate the following ratios (C) Total Debts (D) Profitability, 56. (a)Shareholders’ funds (i.e. (A) 52 Days (C) ₹4,00,000 Cost of Revenue from Operations = Opening Inventory (excluding spare parts and loose tools) + Purchases + Direct Expenses – Closing Inventory (excluding spare parts and loose tools) 20,000 to the creditors, both the total of current assets and total of current liabilities will be reduced by the same amount. This download link will take you to the full document containing close to 100 Financial Accounting past questions and answers. (D) Liquid Assets/Current Liabilities, 4. 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. (A) 1 : 1 (B) 3 Trimes What is meant by ratio? (B) Quick Ratio (D) 12.5%, 104. (b)Trade payables (bills payable and sundry creditors) or Its current liabilities are ₹1,20,000. (C) Sales Turnover 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. (D) 4 Times, (D) Profitability Ratios (i) Purchase of machinery for cash State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. Repayment of long-term loan will reduce the long-term debt but the shareholders’funds will remain same. During 20×1, stockholders’ equity increased $30,000 from $90,000 to $120,000. Ans. (A) 1 : 1 (C) 3.25 : 1 (B) Current ratio and Quick ratio (D) 6 months, 97. (D) 8 Times, 79. (D) Difference between Current Assets and Fixed Assets, 7. Proprietary Ratio will be : (C) 11 Times (D) ₹1,24,000, 75. On the basis of following data, a Company’s Gross Profit Ratio will be : (C) 4.5 : 1 (i)Debt to Equity ratio It establishes the relationship between long-term debt (external equities) and the equity (internal equities) i.e. If average inventory is ₹50,000 and closing inventory is ₹2,000 less than the opening inventory, opening and closing inventory 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. (iv) Issue of bonus shares 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. Ratio will increase as both the current assets and current liabilities will decrease on the payment of dividend. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. (B) 4 months After the payment of ? Ans. (B) ₹36,000 (B) 80% shareholders’ funds. (iii)Proprietary ratio (A) 2 : 1 Effect No change (A) 42 : 1 (i) (a) Not change the ratio (D) ₹5,00,000, 105. (A) 75% Working Capital = Current Assets – Current Liabilities. (iv)Short-term provisions. 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 (B) Liquidity Ratio (A) Current ratio, Accounts receivable Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Operating Ratio =Operating Cost/ Revenue from Operations (Net sales) x 100 Operating profit ratio is an indicator of operational efficiency of the business. Operating ratio is : long-term borrowings and long-term provisions). (B) Activity If its Current Liabilities are ₹2,00,000, what will be the value of Inventory? Accounting Ratios - Accountancy Notes, Questions and Answers, Free Study Material, Chapter wise Online Tests. Assuming that the current ratio is 2 : 1, Cash paid against Bills Payable would: (D) Trade Receivables, 11. Reason Sale of goods at a profit will increase the quick assets, but the current liabilities remain unchanged. (B) 23.2% Long term solvency is indicated by : (C) 2.33 : 1 Opening Inventory of a firm is ₹80,000. (B) 7.5 Times Inventory Turnover Ratio will be : Patents and Copyrights fall under the category of: Current liabilities of a company were ₹2,00,000 and its current ratio was 2.5 : 1. A Company’s liquid assets are ₹10,00,000 and its current liabilities are ₹8,00,000. Quick Ratio is also known as : (D) 9 Times, 84. (D) G.P./Average Inventory, 70. (B) Solvency Ratios 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 : Credit revenue from operations ₹9,00,000; Average Collection period 2 months; Opening debtors are ₹15,000 less as compared to closing debtors. (A) 60% Reason As there is a simultaneous increase and decrease it will not affect the value of current asset. (D) 70%, 66. (C) Total Assets (Any four) (B) Decrease Current ratio Accounting Ratios Class 12. (B) ₹1,20,000 Proprietors’ Funds or Shareholders’ Funds Calculate operating ratio (A) 80% Alternatively operating cost may be calculated as follows: (D) ₹18,000, 81. (B) 10.78 Times or 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. 17.The quick ratio of a company is 2 : 1. (ii) Current liabilities of a company are Rs 1,60,000. (C) 1.25 : 1 Liquid Ratio will be 6.The gross profit ratio of a company is 50%. 34.From the following information, calculate any two of the following ratios Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. 13.From the following information, calculate any two of the following ratios 107. 108. 15.On the basis of the following information, calculate After this the company paid ₹1,00,000 to a trade payable. 50. ... 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. (A) 3 months (D) 2.05 : 1, 38. The ………….. ratios provide the information critical to the long run operation of the firm. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. Liquid Ratio/Quick Ratio/Acid Test Ratio=Liquid Assets or Quick Assets/Current Liabilities (D) 20%, 103. 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