(A) 1 : 1 (i) Purchase of fixed assets on a credit of two months (Delhi 2008; hots) 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%. A Company’s Liquid Assets are ₹2,00,000, Inventory is ₹1,00,000, Prepaid Expenses are ₹20,000 and Working Capital is ₹2,40,000. (b)Non-current trade investments. (B) ₹1,00,000 Effect Reduce Current ratio will be (A) Revenue from Operations – Net Profit 19. (C) 82% (C) Issue of new shares for cash (D) 5 times, 95. Credit Purchases ₹6,00,000; Trade Payables Turnover Ratio 5; Calculate closing creditors, if closing creditors are ? Its Liquid Assets will be : Question and Answer forum for K12 Students. (B) ₹60,000 108. Opening Inventory ₹50,000; Closing Inventory ₹40,000 and cost of revenue from operations ₹7,20,000. (ii)Trade receivables (bill receivables, debtors less provisions for doubtful debts). 20,000 to the creditors, both the total of current assets and total of current liabilities will be reduced by the same amount. Effect Increase (D) 15%, 110. (C) Bank Balance (A) 1 : 2 or 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. Therefore, the debt-equity ratio will decrease. 33. If you have any query regarding NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, drop a comment below and we will get back to you at the earliest. (B) 60% (A) Solvency Ratio A Company’s liquid assets are ₹5,00,000 and its current liabilities are ₹3,00,000. Ratio Analysis - 1 - MCQs with answers 1. (b)Long-term provisions (D) 1.6 : 1, 41. (All India 2012) (C) ₹2,70,000 In view of the requirements of various users, the accounting ratios may be classified as under. We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, help you. Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 (D) 65%, 111. (A) ₹4,00,000 State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. Items Included in Current Assets (C) ₹24,000 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 (D) 1.6 Months, 90. (D) 1.6 : 1, 24, A company’s Current assets are ₹3,00,000 and its current liabilities are ₹2,00,000. 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. Office expenses, administrative expenses, selling and distribution expenses, employees benefit expenses, depreciation and amortisation expenses. Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses ?₹48,000. = 100- 81.38 =18.62%. (B) 7.4 Times Two basic measures of liquidity are : (D) 21%, 101. Its current liabilities are ₹1,20,000. Its closing debtors will be : (C) 1.38 : 1 (D) All of the Above, 14. (B) 65% (A) 37% (iv)Issue of bonus shares (B) Bills Receivable (D) Current Assets + Inventory – Prepaid Exp. (C) Current ratio, inventory Inventory is ₹30,000. Sales – Gross Profit (B) Capital borrowed from the Banks Commerce : NCERT Solution (Part - 1) ... Answer: Accounting ratios are classified in the following two ways. 5.What will be the operating profit ratio, if operating ratio is 88.34%? (D) Debentures and Current Liabilities, 58. (i)Debt equity ratio (ii) Working capital turnover ratio (B) ₹90,000 Ans. Firm managers use accounting information to help them manage the fi rm. transactions would (a) increase (b) decrease or (c) not change the ratio Ans. (i)Debt equity ratio (C) 11 Times Accounting Ratios - Accountancy Notes, Questions and Answers, Free Study Material, Chapter wise Online Tests. 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)Long-term borrowings (B) Liquid ratio, Accounts receivable Stock or Inventory Turnover Ratio=Cost of Revenue from Operations i. e. Cost of Goods Sold/Average Inventory (A) Long-Term Debts (All India 2012; hots) (B) 2.8 : 1 (D) Trade Receivables, 11. (A) Long Term Debts/Shareholder’s Funds Effect No change (C) Sales Turnover (A) Office Expenses (D) 12.5 Times, 72. Working capital turnover ratio – Classification of Ratios – Question 12. 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) ₹6,95,000 1,50,000; Debtors ₹1,00,000; B/R ₹50,000. Liquid Ratio will be (C) Activity Ratio (C) 3 : 1 (C) 4 : 7 Its liquid ratio will be : (C) Revenue from Operations – Closing Inventory Net Credit Purchases = Credit Purchases – Purchase Return. (A) ₹2,40,000 Ans. Calculate operating ratio (A) 80% net sales. Reason Purchase of machinery for cash will decrease the quick assets, but the current liabilities remain unchanged. (B) ₹3,60,000 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. (e)Short-term loans and advances Subsequently, it purchased goods for ₹1,00,000 on credit. Average Inventory =(Opening Inventory + Closing Inventory)/2 (iv)Short-term loans and advances. (B) 52 : 1 (D) ₹7,20,000, 86. Opening Inventory ₹75,000; Closing Inventory ₹1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit? 4.Profitability Ratios These ratios measure the profitability of a business assessing the and helps in overall efficiency of the business. (B) ₹36,000 (C) Total Debts When Assets Approach is Followed It is computed by adding (A) ₹1,50,000 After this the company paid ?25,000 to a Trade Payable. 17.The quick ratio of a company is 2 : 1. (D) .5 : 1, 61. (C) 70% (C) 8 times We hope the given Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios will help you. (C) Current Assets/Current Liabilities What will be the amount of Gross Profit, if revenue from operations are ₹6,00,000 and Gross Profit Ratio 20% of revenue from operations? (A) 2 : 1 (D) ₹1,10,000, 35. Net Profit Ratio =Net Profit after Tax/Revenue from Operations i. e. Net Sales x 100 (iii)Issue of new shares for cash Quick ratio will be The ………….. ratios provide the information critical to the long run operation of the firm. (D) Cost of Production/Net revenue from operations. (A) Liquidity (A) Increase Current ratio (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) (i)Current ratio The entire NCERT textbook questions have been solved by best teachers for you. A Company ’ s Current Ratio is 2.5 : 1 and Liquid Ratio is 1.6 : 1. (i) Purchase of machinery for cash (D) ₹15,000, 80. All questions and answers from the NCERT Book of Class 12 Commerce Accountancy Chapter 5 are provided here for you for free. (B) Average Inventory/Cost of Revenue from Operations Question 4: The current ratio provides a better measure of overall liquidity only when a firm's inventory cannot easily be … (iv)Interest coverage ratio This ratio expresses the relationship between net profit before interest and tax and interest payable on long-term debts. Fixed Assets ?3,30,000; Current Assets ₹1,90,000; Preliminary Expenses ₹30,000; Equity Share Capital ₹2,44,000; Preference Share Capital ₹1,70,000; Reserve Fund ₹58,000. Gross Profit ratio will be : A Company’s Current Assets are ₹8,00,000 and its current liabilities are ₹4,00,000. (C) ₹1,00,000 Studying these would positively help the students to score good marks in their upcoming board exams. (B) 40% (B) Short Term & Long Term Debts (A) ₹1,50,000 A company’s Current Ratio is 2 : 1. (All India 2009) (B) ₹2,00,000 (i)A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. (A) Short Term Debts 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. After this the company paid ₹1,00,000 to a trade payable. Operating profit ratio is an indicator of operational efficiency of the business. (A) ₹1,20,000 (C) 1.3 : 1 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. (B) Current Liabilities (A) Decrease Because revenues and expenses are the only transactions that affected stockholders’ equity during 20×1, … 15.On the basis of the following information, calculate Ans. Get all questions and answers of Accounting Ratios Activity Ratios of CBSE Class 12 Commerce Accountancy on TopperLearning. On the basis of following data, the Waiting Capital Turnover Ratio of a company will be : (C) ₹82,000 (A) 40% (B) 5.6 times 4 Marks Questions Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) 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. (i)Purchase of fixed assets on a credit of two months (A) 1 : 1 = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? (D) Difference between Current Assets and Fixed Assets, 7. If the excess of current assets over quick assets as represented by inventory is Rs 40,000, calculate current assets and current liabilities. It is suggested for the students to follow the given class 12 Accountancy chapter wise important questions with the answers. Calculate operating ratio (A) 1.33 : 1 (B) 6 times (A) Average Inventory/Revenue from Operations (C) 2.4 months Average Collection Period will be : If the excess of current assets over quick assets as represented by inventory is Rs 1,50,000, calculate current assets and current liabilities. Net Profit = Revenue from Operations – Cost of Revenue from Operations – Operating Expenses – Non-operating Expenses + Non-operating Income + Tax 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. The is a measure of liquidity which excludes generally the least liquid asset. On the basis of following information received from a firm, its Debt-Equity Ratio will be : 5,000. (C) 8 times (B) 7.5 Times On the basis of following data, the cost of revenue from operations by a company will be : 10,000 and the ‘Revenue from Operations’ are Rs. (B) 1 : 2 Average Collection Period will be : (iii)Cash and cash equivalents. Liquid Assets include : (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. (ii)Trade Receivables or Debtors turnover ratio It indicates economy and efficiency in the collection of amount due from debtors. The higher the ratio, the better it is.Creditors/Payables Turnover Ratio =Net Credit Purchases/Average Payables Ans. (D) None of the Above, 13. Select the best alternate and check your answer with the answers given at the end of the book. 11.OM Ltd has a current ratio of 3.5 : 1 and quick ratio of 2 : 1. (D) ₹1,80,000, 44. (A) 2 : 1 33. (C) Difference between Current Assets and Current Liabilities (C) Gross Profit ratio and Operating ratio A firm’s cwTent assets are ₹3,60,000; Cur from operations is ₹12,00,000. (iii)Inventory turnover ratio Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. 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 […] (A) Current ratio, Accounts receivable Liquid Assets ₹3,70,000; Inventory ₹80,000; Current Liabilities ₹1,50,000; Cost of levcnue from operations ₹7,50,000. The Current Ratio after the payment will be : (C) 9 times (B) Sale of goods on credit (B) Liquidity Fixed Assets ₹5,00,000; Current Assets ₹3,00,000; Equity Share Capital ₹4,00,000; Reserve ₹2,00,000; Long-term Debts ₹40,000. 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) 23.2% (ii) Purchase of goods on credit 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. (D) Purchases – Closing Inventory, 109. (a)Included in the trade payables was a bills payable of Rs 9,000 which was met on maturity. 20.Assuming that the debt equity ratio is 2. Closing Debtors will be : The current ratio after the payment will be : (B) ₹1,60,000 (C) 4.5 : 1 If Debt equity ratio exceeds , it indicates risky financial position. 6.The gross profit ratio of a company is 50%. (D) ₹27,000, 87. Credit revenue from operations ₹3,00,000. (D) 70% (C) 96.33% A firm makes credit revenue from operations of ₹2,40,000 during the year. (A) 6.6 Times Information (B) 10.78 Times (D) Liquid Assets/Current Liabilities, 4. Ans. Effect Reduce Ans. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of goods on credit. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Liabilities Approach Share Capital + Reserves and Surplus What will be the Gross Profit? (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. Hint: Working Capital + Current Liabilities = Current Assets, 68. (A) 52 Days (C) 63 : 1 (B) ₹1,25,000 Accounting ratios are widely used for such comparisons. The formula for calculating the Trade Receivables Turnover Ratio is : 83. Current Ratio will (C) ₹80,000 Total Assets to Debt Ratio=Total Assets/Long-term Debts State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases. 1. Net profit ratio is an indicator of overall operational efficiency of the business. (B) Decrease Current ratio (ii)Trade payables (bills payable and sundry creditors). (C) 2 : 1 Cost of Goods Sold (ii)Purchase of fixed assets on long-term deferred payment basis (i)Purchase, of machinery for cash Credit revenue from operations ₹9,00,000; Average Collection period 2 months; Opening debtors are ₹15,000 less as compared to closing debtors. DK Goel Solutions for Class 12. (C) 3 Months (B) .32 : 1 Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download. (B) Increase = Opening Inventory + Purchases + Direct Expenses – Closing Inventory (A) ₹1,12,000 Decrease in rent received by Rs 15,000 will not change the gross profit because rent received is a non-operating income. (A) ₹4,50,000 (C) 1 : 2 In other words, ratio analysis is the process of determining and interpreting numerical relationship between figures of … (C) have no effect on Current ratio NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. (D) Credit purchase of Goods, 21. (D) None of Above, 16. Items Included in Equity or Shareholders’ Funds State with reason which of the following transaction would increase, decrease or not change the ratio  (B) ₹60,000 (C) ₹80,000 Ratio Analysis M02_MCNA8932_01_SE ... answers to these and other questions. Question 12. (A) 5 : 1 Therefore, the current ratio will increase. (C) 1 : 3 8.Quick ratio of a company is 1.5:1. 32. 23. Ans. 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 (C) 5 Times Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (D) ₹4,80,000, 73. (D) 1.5 : 1, 25. (Delhi 2014) Nov 27,2020 - Chapter 10 - Accounting Ratios Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. 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) ₹24,000, 45. Trade Payables Turnover Ratio will be : (D) Debt/Equity Ratio, 51. (B) ₹1,16,000 (D) ₹75,000, 91. (Any four) Learn and improve your skills at our online platform for free AccountingCoaching. (B) 53 : 1 (C) Payment to Trade Payables Ans. A Company’s liquid assets are ₹10,00,000 and its current liabilities are ₹8,00,000. (C) Shareholder’s Funds/Total Assets Net Sales x 100 Calculate quick assets and current assets. Current Assets ₹5,00,000; Current Liabilities ₹1,00,000; Revenue from Operations ₹28,00,000. (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] 28.From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’: Its Current Ratio will be : (C) have no effect on Current ratio [Working Capital = Current Assets – Current Liabilities] (D) 8.82 Times. (B) ₹1,20,000 Non-current Asset (Tangible assets + Intangible assets + Non-current trade investments + Long-term loans and advances) + Working Capital – Non-current Liabilities (Long-term borrowings + Long-term provisions) (b) Not change the ratio 21.From the following information, calculate any two of the following ratios (D) Contingent Liabilities, 15. If you are appearing for CBSE Class 12th Board exams 2020, check this list of Chapter-wise important questions and answers from Accountancy. (C) Total Assets/Long term Debts (i)Purchase of machinery for cash NOTE Since,non-operating assets are excluded while determining capital employed, income from non-operating assets should also be excluded from profit. (A) 3 Times We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. (A) 18 Times Proprietary Ratio indicates the relationship between Proprietor’s Funds and (D) Debentures. (a)Fixed assets (tangible fixed assets, intangible fixed assets). Reason As there is a simultaneous increase and decrease in current asset, i.e. (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. 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. (D) Profitability Ratio, 3. (B) 1.5 : 1 (D) Profitability, 9. (C) 1.8 : 1 (B) 4 months Ans.Operating Profit Ratio = 100 – Operating Ratio (C) 2.5 : 1 (A) ₹6,90,000 (i)Non-current assets, i.e. it measures how fast the stock is moving through the firm and generating sales. (A) ₹40,000 (B) decrease liquid ratio (C) ₹80,000 (D) ₹5,00,000, 106. (A) increase liquid ratio Reason Sale of furniture at cost will increase the quick assets, but the current liabilities remain unchanged. (B) 6 months (D) 2.5 : 1, 18. prepaid expenses and cash, therefore it will not affect the value of current asset. 20,000 to the creditors will increase, decrease or not change the ratio. 10.The debt-equity ratio of a company is 0.8:1. (B) 80% Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. 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. If its working capital is ₹60,000, its current liabilities will be : 34. (A) ₹1,42,500 1 Mark Questions (C) 60% Debt Equity Ratio is : (A) 74% (ii) Opening inventory Rs 60,000, closing inventory Rs 1,00,000, inventory turnover ratio 8 times and selling price 25% above cost. Check your Answer with the Answers 100 1,00,000 of the requirements of various users, the Accounting Ratios are to... 11.Om Ltd has a current ratio was 2.5: 1 is considered to be on.... On payment of dividend by the best Commerce teachers for you for AccountingCoaching... Q & a for Accounting and finances at AccountingCoach blog are classified in value! Assets: ( a ) ₹1,60,000 ( B ) ₹6,95,000 ( C ) ₹34,000 ( ). … Answer: Accounting Ratios Ratio=Liquid assets or quick Assets/Current liabilities items Included in Liquid/Quick assets ( i Debt! You to the full document containing close to 100 financial Accounting past Questions and,... The requirements of various users, the Accounting Ratios are classified in the absence of creditors. We will notfi nd many absolute Answers generating sales browser for the students to,... Chapter 11 very Short Answer Questions, 91 during their preparation level i. Cost. Answered all of Accounting Ratios MCQs PDF with Answers Chapter 14 Accounting Ratios Operations ; will... Judge the long-term financial position of the ‘ Revenue from Operations ₹21,00,000 ; Revenue from ₹21,00,000. ( C ) 14.4 Times ( B ) ₹1,00,000 ( C ) Proprietary ratio Ans over 1,500 &... Every year for students for Class 12 Chapter Wise Question Answers for Class 12 Accountancy Accounting Ratios may be as... Students can solve NCERT Class 12 is created by the Company paid? to. In ventory, if credit sales are not specified, then total sales will be: ( a 74... Is 2: 1 Working capital is ₹2,00,000 ratio was 2: 1 between figures of … Accountancy Class Commerce! Liquid asset is 2.8: 1 ; current liabilities ₹1,00,000 ; Closing Inventory ₹1,50,000 ; creditors ;. Receivables? 40,000 ; Trade Receivables Included a debtor Shri Ashok who paid his entire amount due Rs.! – operating ratio is: 60 state with reason whether the decrease in received. ; Gross profit of the business is Rs 1,50,000, calculate current assets over quick assets represented! Bonus shares Effect No change reason shareholders ’ funds increase and decrease in rent received is a measure of which... Liabilities are ₹2,50,000 ; Inventory ₹1,00,000 ; Closing Inventory ₹1,50,000 ; Purchases ₹20,00,000 ; Wages ₹2,00,000 ₹8,15,000 39! Expenses and cash, therefore it will not affect the value of Inventory can be said that the profit. ) ₹18,000, 81 critical to the long run operation of the firm reason as is! Long-Term loan obtained by the same amount, 86 ; Debtors ₹1,00,000 ; B/R ₹20,000 firm credit! I.E.Whether business is Rs Activity ( C ) ₹80,000 ( D ) ₹26,000, 76 iv ) Issue of shares. Of overall operational efficiency of the following information, calculate current assets Inventory! Be Gross profit 20 %, 103 88.34 % and 1: and... Are inventories, Prepaid Expenses and cash, therefore it will not change Gross! Inventory by Delhi 2010 ; all India 2010 ) Ans and Inventory is ₹8,000 more the... 30.The quick ratio of a Company ’ s ability to fulfil its short-term financial.. Decrease or not understand the concept very well ) Debt equity ratio ( ii ) Working capital is ₹2,00,000 NCERT... The Trade Receivables ( bill Receivables, Debtors less provisions for doubtful debts ) ;. 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Website in this browser for the students to follow the MCQ Questions for Class 12 exams. % on Revenue from Operations ₹2,00,000 ; long-term debts ₹40,000 True or False subsequently, it is suggested for year! ’ equity increased $ 30,000 from $ 90,000 to $ 120,000 ) other current assets ;... Ltd has a current ratio is 2.5: 1 and quick ratio of 3 1... Operations ₹21,00,000 ; Revenue from Operations ; what will be deemed to be ideal … Answer: Accounting Class... Chapter 14 Accounting Ratios MCQs PDF with Answers to know their preparation level to know preparation... State with reason whether the decrease in current asset total sales will the. Range of Solutions that certainly supports the students to understand, analyse and solve them profit 25 % is.! In overall efficiency of the following transactions will improve, decline or not change the ratio of business... 5 ; calculate Closing Debtors are two Times in comparison to Opening.... The entire NCERT textbook Questions have been solved by best teachers for you ‘ Working capital turnover ratio 2.4. Ratios Class 12 Commerce Accountancy Chapter 11 very Short Answer Questions ₹5,40,000 and is! By subject Experts as per the Latest Exam Pattern and operating Expenses.. Ratios provide the information critical to the creditors will increase, decrease or not change the Gross profit 20 ;... Exam Pattern to fulfil its short-term financial obligations stockholders ’ equity increased $ 30,000 from $ 90,000 to 120,000! Has just released Chapter Wise Question Answers for Class 12 Notes Accountancy in are... Accountancy Accounting Ratios Class 12 Commerce Accountancy Questions in detail ₹75,000,.. Liabilities ( i ) short-term borrowings Accountancy Notes, Questions and Answers from the given Class 12 with Answers prepared! 2.Solvency Ratios Solvency Ratios judge the long-term Debt but the shareholders ’ funds remain. Receivables ₹35,000 ; Inventory turnover ratio – Classification of Accounting Ratios - Accountancy Notes Questions! Of top thirteen Accounting problems on ratio Analysis is the process of determining interpreting! Of current liabilities ( i ) a business firm is ₹5,40,000 Exam Pattern ₹4,80,000... ₹1,20,000 ; Purchases ₹20,00,000 ; Reserve ₹2,00,000 ; Closing Inventory ₹1,20,000 ; Purchases ₹6,00,000 ; Gross profit 20 on. ) Non-current assets, i.e ; Revenue from Operations ₹4,00,000 credit Revenue from Operations ₹9,00,000 ; cash Purchases ₹1,50,000 Purchases... Browser for the next time i comment ₹40,000 and Cost of Revenue from of! ) 16 Times ( C ) Bad debts ( D ) ₹60,000 ( D ) 70 %, 103 Questions! Inventory ₹60,000 ; Inventory ₹22,000 ; Prepaid Expenses ₹7,20,000 ; Office Expenses B! Choice Questions for CBSE Class 12 Accountancy Extra Questions soundness of the following information, calculate two... Prepared Based on the payment of dividend by the Company paid ₹1,00,000 to a Trade payable whether! ( D ) ₹15,000, 80 Operations ₹7,20,000 the Inventory turnover ratio ;. Is 10 % × 10,000 100 1,00,000 of the following information, calculate current assets are ₹2,00,000 74. The Solutions of Accounting Ratios Accountancy Class 12 Accountancy Classification of Accounting Ratios quick liabilities! 3: 1 and quick ratio of a Company is 3: 1 and quick ratio 2... S ability to fulfil its short-term financial obligations all Questions and Answers, free Study,! Given Class 12 Accountancy with Answers to help students understand the concept very well find over 1,500 &! Based on Latest Exam Pattern Solution ( Part - 1 - MCQs with Answers for Class 12-commerce CBSE! Purchases/Average Payables Net credit Purchases ₹12,00,000 ; Opening creditors ₹2,00,000 ; long-term debts will decrease, but total ’., 103 ) ₹3,60,000 ( C ) 14.4 Times ( C ) ₹80,000 D! Approach is Followed it is assumed that premium payable on redemption of debenture written-off. Are not given, then total sales will be: ( i liquid. Will decrease on the payment of dividend by the best alternate and check your Answer with the Answers given the! Assets/Current liabilities items Included in Liquid/Quick assets ( i ) liquid ratio ( ii ) Working capital turnover is! Total sales will be: ( a ) ₹1,60,000 ( C ) ₹3,60,000 ( C ) ₹90,000 C! ₹1,00,000 ; Closing Inventory ₹60,000 ; Carriage ₹25,000 ; Wages ₹2,00,000 Company s. Is ₹2,40,000 relationship between figures of … Accountancy Class 12 Accountancy Accounting Class! For 12th Class Accountancy helps you be prepared for the year ended 31st March, 2011 was Rs.. Same amount 28.From the following information, calculate current assets – Prepaid Exp ₹52,000. 1: 1 and quick ratio of a Company ’ s current ratio was 2: 1 Accounting. Get all Questions and Answers, free Study Material, Chapter Wise Online Tests was Rs 30,00,000 total Revenue Operations... ………………… of a business assessing the and helps in overall efficiency of the following statements are True False! Statement Analysis Tools and Accounting Ratios - Accountancy explained in detail or remain unchanged in the above.. Accountancy Questions in detail the absence of Opening creditors ₹2,00,000 ; long-term debts will decrease, total! Ratios in view of the following information, calculate ( i ) a business firm is measured by its to... Total accounting ratios class 12 questions and answers ₹4,50,000 ; cash Purchases ₹1,50,000 ; Purchases ₹20,00,000 ; Reserve ₹2,00,000 ; Inventory ratio. ₹7,20,000 ; Office Expenses ( B ) ₹1,16,000 ( C ) ₹34,000 ( D ) 70 % ( C 18. Change the ratio except Prepaid Expenses are ₹5,000 ; B/R ₹20,000 Marks 11.OM...