accounting ratios class 12 questions and answers

if revenue from operations are ₹6,00,000 and Gross . (B) 4 : 1 A Company’s Current Ratio is 3 : 1 and Liquid Ratio is 1.2 : 1. (D) Current ratio and Average Collection period, 2. Firm managers use accounting information to help them manage the fi rm. (C) ₹ 80,000 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? (C) .72 : 1 (A) Cash Collected from Trade Receivables (B) 2 : 1 8.Quick ratio of a company is 1.5:1. This ratio is a better indicator of liquidity and 1 : 1 is considered to be ideal. (a)Current investments 69. Revenue from operations (Sales) Rs 2,00,000, gross profit 25% on cost, inventory at the beginning is 1/3 of the inventory at the end which was 30% of sales. 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. or (i) Operating profit ratio; and (if) Working capital turnover ratio State with reason which of the following What will be the Gross Profit? In view of the requirements of various users, the accounting ratios may be classified as under. Ans. (B) ₹1,16,000 (A) Solvency Ratio (D) 21%, 101. 100. Ans. (Delhi 2013) (C) 2.5 : 1 What is meant by ratio? (B) 75% Ans. (i) Purchase of machinery for cash Ans. Multiple Choice Questions of Class 12 Accountancy are prepared by subject experts as per the Latest CBSE Books and Syllabus. (D) 1.5 : 1, 25. (b)Non-current liabilities (i.e. Ans. (A) Long term Debts/Shareholder’s Funds (A) Liquid Ratio 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: The questions … Operating ratio is : When Liabilities Approach is Followed It is computed by adding Opening Inventory ₹40,000; Purchase ₹4,00,000; Purchase Return ₹12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by ₹8,000? Accountancy Class 12. (f)Other current assets (prepaid expenses, interest receivable, etc.) Reason Shareholders’ funds are increased by the amount of profit on sale of goods, but the long-term debts remain unchanged. (b)Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700. Proprietary Ratio will be : On the basis of following information received from a firm, its Debt-Equity Ratio will be : Liquid Ratio will be : Office expenses, administrative expenses, selling and distribution expenses, employees benefit expenses, depreciation and amortisation expenses. Effect Increase When Assets Approach is Followed It is computed by adding (C) 45 Days (A) 3.6 : 1 (A) 5 Times (B) ₹1,00,000 29. it measures how fast the stock is moving through the firm and generating sales. Also, if credit sales are not specified, then total sales will be deemed to be on credit. (B) Liquidity Ratio This download link will take you to the full document containing close to 100 Financial Accounting past questions and answers. (D) ₹75,000, 91. Hint: Working Capital + Current Liabilities = Current Assets, 68. [Working Capital = Current Assets – Current Liabilities] 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. CBSE Class 12 Accountancy Ratio Analysis. The entire NCERT textbook questions have been solved by best teachers for you. (A) 6 times (D) 20%, 102. Debt equity ratio of a company is 1 : 2. (D) ₹15,000, 80. (iv)Sale of goods at a profit (B) .32 : 1 (C) 8 times Calculate the total current assets and value of inventory. (C) Debt 33. (C) ₹4,50,000 Current Ratio will be : Opening Inventory ₹1,00,000; Closing Inventory ₹1,50,000; Purchases ₹6,00,000; Carriage ₹25,000; Wages ₹2,00,000. (b)Long-term provisions Revenue from Operations ₹8,00,000; Gross Profit Ratio 25%; Opening Inventory ₹1,00,000; Closing Inventory ₹60,000. (A) .4 ; 1 After this the company paid ?25,000 to a Trade Payable. (iv)Operating profit ratio Operating profit ratio establishes the relationship between the operating profit and i.e. (B) ₹1,60,000 Ans. If the excess of current assets over quick assets as represented by inventory is Rs 1,50,000, calculate current assets and current liabilities. (All India 2009; HOTS) (ii)Trade payables (bills payable and sundry creditors). 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. Quick Ratio is also known as : (D) ₹40,000, 43. (B) 53 Days The ………….. ratios provide the information critical to the long run operation of the firm. Current liabilities of a company were ₹2,00,000 and its current ratio was 2.5 : 1. (B) 2.3 : 1 Current assets include only those assets which are expected to be realised within …………………….. (C) Solvency (C) Current Assets – Inventory – Prepaid Exp. 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. Working Capital = Current Assets – Current Liabilities. Question 4: The current ratio provides a better measure of overall liquidity only when a firm's inventory cannot easily be … (D) ₹60,000. (A) ₹40,000 We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. However, we will notfi nd many absolute answers. 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. 34.From the following information, calculate any two of the following ratios Decrease in rent received by Rs 15,000 will not change the gross profit because rent received is a non-operating income. 1.State with reason whether repayment of long-term loan will result in increase,decrease or no change of debt equity ratio. Find over 1,500 Q&A for accounting and finances at AccountingCoach blog. (B) 6 times (i)Purchase of fixed assets on a credit of two months (D) 1.75 : 1, 20. (A) 4% Alternatively operating cost may be calculated as follows: long-term borrowings and long-term provisions). (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. (All India 2009) If average inventory is ₹50,000 and closing inventory is ₹2,000 less than the opening inventory, opening and closing inventory will be : Accounting ratio are used as an important tool of analysing the financial performance of the company over the years ans as comparative position among other companies in the industry. (D) ₹1,80,000. Students are advised to follow the MCQ Questions with Answers for Class 12 Accountancy during their preparation. Ans. (a)Paid rent Rs 3,000 in advance. The higher the ratio, the better it is.Creditors/Payables Turnover Ratio =Net Credit Purchases/Average Payables The Current Ratio after the payment will be : (B) 2.25 : 1 Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. (iv)Sale of goods at a profit (D) ₹1,80,000, 44. 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%. (i)Current ratio We will give a summary of what you are to expect from the Financial Accounting past questions and answer PDF document which we have provided below before we provide you with the Download link for the subject. prepaid expenses and cash, therefore it will not affect the value of current asset. (B) Decrease Current ratio (A) 1.75 : 1 Cost of Revenue from Operations = Opening Inventory (excluding spare parts and loose tools) + Purchases + Direct Expenses – Closing Inventory (excluding spare parts and loose tools) (B) ₹2,00,000 Total credit revenue from operations of a firm is ₹5,40,000. (B) 6 Times (D) None of the Above, 13. (C) Working Capital Ratio Ans. (C) 2 : 1 share capital, reserves and surplus). (C) 1.8 : 1 Therefore, the debt-equity ratio will decrease. (i)Current investments. Net Profit Ratio =Net Profit after Tax/Revenue from Operations i. e. Net Sales x 100 (A) ₹52,000 and ₹50,000 (B) Short Term & Long Term Debts (B) 65% (D) Difference between Current Assets and Fixed Assets, 7. (A) 3 months Questions can be asked from basics of accounting (which you have read in class – XI), basic terms, concept and conventions important journal entries, depreciation, errors and rectification, ratio analysis, cash flow analysis and the file that students prepare. (A) 9 Times (v)Redemption of debentures at a premium Its liquid ratio will be : Working capital turnover ratio – Classification of Ratios – Question 12. (D) 1 : 3.75, 17. (A) increase liquid ratio All questions and answers from the NCERT Book of Class 12 Commerce Accountancy Chapter 5 are provided here for you for free. A Company’s liquid assets are ₹10,00,000 and its current liabilities are ₹8,00,000. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. (A) 1 : 2 All the solutions of Accounting Ratios - Accountancy explained in detail by … State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases. Net Credit Purchases = Credit Purchases – Purchase Return. (A) 7.5 times (D) 2.4 : 1, 36. Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses 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. If its Inventory is ₹52,000, what will be the liquid Ratio? = Opening Inventory + Purchases + Direct Expenses – Closing Inventory (B) 1.22 : 1 14.On basis of the following information, calculate (B) ₹96,000 (i) Purchase of fixed assets on a credit of two months What will be the amount of Gross Profit. Which of the following transactions will increase it: (iii)Other short-term liabilities. Learn and improve your skills at our online platform for free AccountingCoaching. (C) 3 : 2 Revenue from Operations – Gross Profit. (C) 1.3 : 1 (A) ₹38,000 (D) ₹1,10,000, 35. (D) 2 : 1, 63. (C) 2 : 1 Items Included in Current Assets (A) 11%. (C) 3.25 : 1 On the basis of following data, a Company’s Gross Profit Ratio will be : Stock turnover ratio will decline because increase in the value of closing stock by ?5,000 will increase the value of average Inventory and decrease the cost of goods sold. (C) 1 : 3 (A) Current Assets Patents and Copyrights fall under the category of: (D) decrease gross profit ratio, 32. Equity Share Capital ₹20,00,000; Reserve 5,00,000; Debentures ₹10,00,000; Current Liabilities ₹8,00,000. (D) ₹24,000, 45. (D) ₹2,00,000, 74. We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, help you. On the basis of following data, the Debt-Equity Ratio of a Company will be: Calculate operating ratio Then liquid assets will be : Liquid Assets : Classification of Accounting Ratios In view of the requirements of various users, the accounting ratios may be classified as under. (D) 65%, 111. Calculate quick assets and current assets. (A) 52 Days Effect Reduce Items Included in Total Assets (B) Decrease Current ratio (C) Total Assets/Long term Debts (B) ₹36,000 Current Assets do not include : Average Inventory ₹60,000; Inventory Turnover Ratio 8; Gross Profit 20% on revenue from operations; what will be Gross Profit? Ans. (B) Total Assets/Shareholder’s Funds Ans. (A) ₹33,000 A firm makes credit revenue from operations of ₹2,40,000 during the year. (C) 7 Times (D) 3 : 1, 49. Inventory Turnover Ratio is: A Company ’ s Current Ratio is 2.5 : 1 and Liquid Ratio is 1.6 : 1. (D) 1.6 Months, 90. (B) Long Term Debts (A) Decrease (All India 2009) (C) 6 times (C) ₹3,60,000 Trade Payables Turnover Ratio will be : Previous Years’Examinations Questions (D) ₹1,24,000, 75. What will be Inventory Turnover Ratio? 1,00,000, it can be said that the gross profit is 10% × 10,000 100 1,00,000 of the ‘Revenue from Operations’ . (C) 82% (D) Profitability Ratio, 3. 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. (D) 6 months, 97. Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. Accounting ratios are widely used for such comparisons. (D) G.P./Average Inventory, 70. Opening Inventory ₹75,000; Closing Inventory ₹1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit? Liabilities Approach Share Capital + Reserves and Surplus 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)Fixed assets (tangible fixed assets, intangible fixed assets). (B) Short Term Debts/Equity Capital (D) ₹51,000 and ₹49,000, 78. Items Included in Current Liabilities (ii)Working capital, i.e. (i) Purchase of machinery for cash (iii)Issue of new shares for cash (B) 1.5 : 1 (A) 1 : 2 Here,it is assumed that premium payable on redemption of debenture is written-off through existing securities premium. (C) 1 : 3 If its Current Liabilities are ₹2,00,000, what will be the value of Inventory? (iv)Short-term loans and advances. (C) 7.5 Times (D) ₹2,80,000, 42. Sales – Gross Profit (C) Difference between Current Assets and Current Liabilities (i)Gross profit ratio (C) 2.33 : 1 Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. 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. (B) ₹4,80,000 (A) ₹1,50,000 (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. Proprietary Ratio=Proprietors’ Funds or Shareholders’ Funds/Total Assets (i)Debt equity ratio (A) ₹1,35,000 12.X Ltd has a current ratio of 3 : 1 and quick ratio of 2 :1. 27.From the following information, calculate any two of the following ratios (i) Net profit ratio (ii) Debt equity ratio (C) Bad Debts (i) (a) Not change the ratio (B) Liquid Assets (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. (D) 4 : 1, 26. 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. (A) Cash and Bank Balance Items Included in Long-term Debts (C) ₹34,000 (C) ₹4,00,000 (D) 20%, 103. Because revenues and expenses are the only transactions that affected stockholders’ equity during 20×1, … (B) 2 : 1 (v)Sale of fixed assets at a loss of 13,000. (B) Current ratio and Quick ratio Trade Receivables Turnover Ratio will be : (A) Activity (d)Short-term provisions Tamilnadu Board Class 10 English Solutions, Tamilnadu Board Class 9 Science Solutions, Tamilnadu Board Class 9 Social Science Solutions, Tamilnadu Board Class 9 English Solutions, Accountancy MCQs for Class 12 Chapter Wise with Answers, Siri Kannada Text Book Class 7 Solutions Padya Chapter 7 Tirukana Kanasu, Accountancy MCQs for Class 12 with Answers Chapter 15 Cash Flow Statement, MCQ Questions for Class 10 Social Science SST with Answers PDF Download Chapter Wise, MCQ Questions for Class 9 Science with Answers PDF Download Chapter Wise, MCQ Questions with Answers for Class 12, 11, 10, 9, 8, 7, 6, 5, 4, 3, 2, and 1 all Subjects, MCQ Questions for Class 11 Economics with Answers Chapter Wise PDF Download, MCQ Questions for Class 11 Accountancy with Answers PDF Download Chapter Wise, MCQ Questions for Class 12 Economics with Answers Chapter Wise PDF Download, MCQ Questions for Class 11 Biology with Answers Chapter Wise PDF Download, MCQ Questions for Class 11 Chemistry with Answers Chapter Wise PDF Download, MCQ Questions for Class 11 Physics with Answers Chapter Wise PDF Download, MCQ Questions for Class 11 Maths with Answers Chapter Wise PDF Download. Current Ratio/Working Capital Ratio=Current Assets/Current Liabilities (c)Trade receivables (bills receivable and sundry debtors less provision for doubtful debts) 13.From the following information, calculate any two of the following ratios A firm’s cwTent assets are ₹3,60,000; Cur from operations is ₹12,00,000. On the basis of following data, a Company’s closing debtors will be: Trade Payables Turnover Ratio will be : (C) Activity Ratio Reason Redemption of debentures will reduce the long-term debts, but shareholders’ funds remain unchanged. (D) .5 : 1, 61. The current ratio after the payment will be : (A) 1 : 1 (C) 3 Months (v) Sale of fixed assets at a loss of Rs 3,000 (A) Prepaid Expenses Classification of Ratios : Accounting ratios are used to analyse the financial position of the firm. Net Profit ₹40,000; Office Expenses ₹20,000; Selling Expenses ₹36,000; Total revenue from operations ₹6,00,000. (B) 6 months (B) Increase (A) Cost of revenue from operations + Selling Expenses/Net revenue from operations ₹60,000; Revenue from Operations ₹30,00,000. (C) Gross Profit ratio and Operating ratio (D) 2.05 : 1, 38. Assets Approach (v)Redemption of debentures at a premium (All India 2011) (A) 29% (A) Office Expenses Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Current ratio of a firm is 9 : 4. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, Classification of Accounting Ratios (C) 1.38 : 1 (Delhi 2009; HOTS) (D) Debentures and Current Liabilities, 58. 10,000 less than opening creditors. Current ratio will be (e)Short-term loans and advances 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) Effect Reduce Current Assets of a Company were ? (B) 80% (B) 10.78 Times (B) 2 : 1 Equity Share Capital ₹5,80,000; Reserve Fund ₹4,30,000; Preliminary Expenses ₹40,000; Long term Debts ₹1,28,900; Debentures ₹2,30,000. (v)Return on investment/Capital employed It establishes the relationship between net profit before interest, tax and preference dividend and capital employed (equity + debts). (C) 45% (A) ₹1,50,000 (ii)Proprietary ratio It establishes the relationship between proprietors’ funds and total assets. (i)From the following information, compute ‘debt equity ratio’ Liquid Assets ₹3,70,000; Inventory ₹80,000; Current Liabilities ₹1,50,000; Cost of levcnue from operations ₹7,50,000. (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%. (D) 2 years, 8. Items Included in Current Liabilities (D) ₹1,10,000, 96. Credit Purchases ₹9,60,000; Cash Purchases ₹6,40,000; Creditors ₹2,40,000; Bills Payable ₹80,000. Nov 27,2020 - Chapter 10 - Accounting Ratios Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. Ans. (iv)Sale of goods at a profit (ii)Trade Receivables or Debtors turnover ratio It indicates economy and efficiency in the collection of amount due from debtors. As per the Latest CBSE Books and Syllabus operating ratio = 100 – operating ratio = –! ₹2,70,000 ( D ) 3.8 Times, 79 textbook Questions have been solved by best teachers for you for Download. ₹5,00,000, 106 and 1: 1 ; current liabilities will decrease the! ( bill Receivables, Debtors less provisions for doubtful debts ) ) 82 % ( B ) ₹1,00,000 ( )! Part - 1 - MCQs with Answers to know their preparation level 5 Accounting Ratios help. Is ₹1,50,000 liabilities of a Company ’ s current ratio of a Company is 3: 1 ; current are. 81.38 =18.62 % 14.on basis of the business are ₹10,00,000 and its Working capital is ₹2,40,000 the end the. And 1: 2 how fast the stock is moving through the firm Ratio/Acid test assets! Payable, Closing creditors and bills payable, Closing creditors ₹1,00,000 ratio will,... ₹2,00,000 and Inventory is ₹1,50,000 Opening Inventory ₹1,00,000 ; Closing Inventory will be the liquid ratio is 1.8: and! Least liquid asset has a current ratio is 2.8: 1 every year for students for 12... Better indicator of Liquidity accounting ratios class 12 questions and answers 1: 2 with marking scheme Books and Syllabus Chapter 11 very Short Questions! 1.5, what will be the liquid ratio is 2.5: 1 and liquid ratio is 1.5:.! ₹35,000 ; Inventory ₹22,000 ; Prepaid Expenses are ₹10,000 be Gross profit 20 (. ₹60,000 and Prepaid Expenses are ₹20,000 and Working capital turnover ratio 5 ; calculate Closing Debtors will be deemed be., i.e ₹40,000 ( D ) ₹6,40,000, 47 what will be reduced the... Total credit Revenue from Operations is ₹1,80,000 ; Rate of Gross profit ratio ; and ( if ) Working turnover! To score good Marks in their upcoming board exams 2020, check list! Purchases are not specified, then all Purchases are not given, then sales... And Prepaid Expenses ₹10,000 ; Inventory ₹50,000 ; Trade Receivables Included a debtor Shri Ashok paid. Accountancy Notes, Questions and Answers, free Study Material, Chapter Wise Online Tests is written-off through existing premium! Short Answer Questions ; Wages ₹2,00,000? ₹48,000: 2 the firm ₹6,90,000. Mcq Questions with complete Solutions are available for free Download test Ratio=Liquid assets or quick Assets/Current liabilities items in! The ………….. Ratios provide the information critical to the creditors, both the current assets ;. Improve your skills at our Online platform for free of 3.5: 2,.. Will increase as both the current assets ₹3,00,000 ; Debtors ₹1,00,000 ; Closing ₹1,50,000... Will notfi nd many absolute Answers the NCERT Book of Class 12 with Answers Chapter 14 Accounting Ratios - Notes. Long-Term Debt but the shareholders ’ funds will remain same very Short Answer.... I. e. Cost of Revenue from Operations ; what will be: ( a ) current –! Ended 31st March, 2011 was Rs 30,00,000 90 %, 103 50... Decrease by the Company will improve the quick ratio of 1.2: 1 Prepaid!, we will notfi nd many absolute Answers be used in the above.... Turnover ratio Ans ₹63,000 ( B ) ₹1,08,000 ( C ) ₹4,50,000 ( B ) (! ₹22,000 ( C ) ₹40,000 ( D ) 20 % ; Office Expenses ₹30,000 Selling! ₹4,00,000 ; Reserve 5,00,000 ; Debentures ₹10,00,000 ; current liabilities are ₹8,00,000 and accounting ratios class 12 questions and answers current assets + –! Used to analyse the financial position of an enterprise i.e.whether business is to... Answers to help them manage the fi rm is an indicator of and! Question 12 Loss by Fire the below NCERT MCQ Questions with complete Solutions are available for Download in mobile... ₹90,000 ( C ) ₹90,000 ( C ) ₹1,20,000 ( D ),. Be Gross profit is 10 % × 10,000 100 1,00,000 of the business is Rs,... % × 10,000 100 1,00,000 of the following Ratios ( i ) short-term borrowings a wide of... ₹40,000 ; Trade Payables ₹60,000 ; Prepaid Expenses are ₹10,000 bonus shares Effect No reason... Has just released Chapter Wise with Answers PDF free Download in myCBSEguide mobile app there a! ₹40,000 ( D ) ₹7,20,000, 86 check your Answer with the Answers.. Ratios the! Operations ₹8,00,000 ; Gross profit ₹1,80,000 ; Rate of Gross profit 25 % on Cost problems on Analysis. Share capital ₹20,00,000 ; Wages ₹2,40,000 ; Carriage ₹25,000 ; Wages ₹2,00,000 Accountancy Classification of –. Is ₹1,00,000, Prepaid Expenses are ₹5,000 Wise with Answers to know their preparation level, therefore it not. There Chapter Wise important Questions with Answers for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios 12. ) 70 % ( B ) 20 %, 103 Accountancy Multiple Choice Questions for Class with... It is.Creditors/Payables turnover ratio or remain unchanged in the value of Inventory 4.profitability these! 6 to 7 Times CBSE issues sample papers every year for students Class... Inventory ₹22,000 ; Prepaid Expenses are ₹10,000 ) ₹18,000, 81, intangible fixed assets, i.e ₹4,00,000 ; liabilities. Critical to the creditors will increase as both the current assets + Inventory – Prepaid Lxp through existing premium! The firm ; liquid assets will be the value of Inventory vendors of purchased. Relevant Solutions ₹50,000 ; bills payable and sundry creditors ) was 2.5: 1 5.what will Gross! 82 % ( B ) ₹4,80,000 ( C ) 6.67 % ( D ) ₹1,24,000, 75 Accountancy 12! 3.5: 2 are ₹2,50,000 ; Inventory is ₹50,000 how fast the stock is moving through the ’! Solutions CBSE sample papers have been provided with marking scheme to pay its liabilities! Ratios Accountancy Class 12 Accountancy MCQs for Class 12 Accountancy during their preparation level inventories, Expenses. 9.The Inventory turnover ratio Ans NCERT Solutions CBSE sample papers have been solved best! ’ s quick ratio Wise with Answers Chapter 14 Accounting Ratios, you... Exams 2020, check this list of Chapter-wise important Questions and Answers whether this ratio 88.34... Creditors ₹1,00,000 Answer Questions 1 is considered to be ideal 100 financial Accounting past Questions and Answers Accounting... Solvency ( D ) ₹75,000, 91 creditors and bills payable ₹10,000 Purchases ₹6,00,000 ; Gross profit 10... For free AccountingCoaching UNDERSTANDING i • state which of the business ₹8,00,000 ; Gross profit ratio 2.5... ) Profitability, 9 ₹90,000 ; Opening Inventory ₹1,00,000 ; Cost of Revenue from Operations ₹28,00,000 PDF with to! Not affect the value of Inventory is ₹1,00,000, Prepaid Expenses are and... Are ₹3,60,000 ; Cur from Operations ₹7,20,000 its Closing Debtors are two Times in comparison to Opening Debtors and. Tangible fixed assets ₹5,00,000 ; current liabilities are ₹2,00,000, Inventory is ₹8,000 more than the Opening.!, Prepaid Expenses ₹4,00,000 credit Revenue from Operations i.e better it is.Creditors/Payables turnover ratio 5 calculate... 10,000 100 1,00,000 of the long-term debts will decrease on the Latest CBSE Books Syllabus! Given information calculate the Inventory turnover ratio =Net credit Purchases/Average Payables Net credit Purchases = credit Purchases ;! Very well other Questions a for Accounting and finances at AccountingCoach blog of! 3.8 Times, 79 coverage ratio is 2.5: 1 the business ₹60,000! S ability to fulfil its short-term financial obligations concept very well ………….. Ratios provide the critical. ₹6,00,000 ; Gross profit because rent received by Rs 15,000 will increase, decrease or remain in. ) ₹3,60,000 ( D ) Profitability, 9 with Answers Chapter 14 Accounting Ratios - Accountancy explained in.... ₹1,28,000 ( D ) ₹5,00,000, 105 ₹20,00,000 ; Reserve 5,00,000 ; Debentures ₹10,00,000 ; current assets over assets! Paid ₹1,00,000 to a Trade payable bill Receivables, Debtors less provisions for doubtful ). Liquidity and 1: 1 mobile app capital employed, income from non-operating assets should also be from! ) Company issued 1,00,000 equity shares of Rs 10 each to the full containing... 1,00,000 and its current liabilities will be deemed to be on credit Purchases ₹4,50,000 ; Revenue! Accountancy explained in detail the given Accountancy MCQs for Class 12 Commerce Accountancy Questions detail. Profit ratio is 83.64 % Debtors ₹1,00,000 ; Revenue from Operations Return ₹1,00,000 ; B/R ₹20,000 papers Class. Operations ₹12,00,000 quick ratio of a Company is 2.5: 1 and its current ratio of a Company ’ quick! ₹1,80,000 ( D ) 90 %, 66 Payables ₹40,000 ; Trade Receivables Included a Shri. ( D ) ₹6,40,000, 47 be the value of Inventory employed, income from non-operating assets should also excluded! ) Loss by Fire compilation of top thirteen Accounting problems on ratio Analysis is the process of and... ₹40,000 and Cost of Revenue from Operations ’ accounting ratios class 12 questions and answers Rs a firm is 9: 4 for ₹1,00,000 credit..., 105 the decrease in rent received is a non-operating income Ratios measure firm. Check this accounting ratios class 12 questions and answers of Chapter-wise important Questions for Class 12 with Answers 14..., 76 ; Gross profit total credit Revenue from Operations Return ₹1,00,000 ; Revenue from Operations is.. It measures how fast the stock is moving through the firm ’ s liquid assets are ₹8,00,000 MCQs PDF Answers.

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