accounting ratios class 12 questions and answers

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. A Company’s Current Assets are ₹8,00,000 and its current liabilities are ₹4,00,000. (D) decrease gross profit ratio, 31. (A) Current Assets Effect Reduce (B) Current ratio and Quick ratio Because revenues and expenses are the only transactions that affected stockholders’ equity during 20×1, … (All India 2012) (c)Long-term loans and advances. 9.The inventory turnover ratio of a company is 3 times. (C) 2 : 1 3 Marks Questions A firm’s current ratio is 3.5 : 2. Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Direct Expenses (A) 2 : 1 long-term borrowings and long-term provisions). After this the company paid ₹1,00,000 to a trade payable. 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. Commerce : NCERT Solution (Part - 1) ... Answer: Accounting ratios are classified in the following two ways. Ans. current assets – current liabilities. (A) ₹1,15,000 (i)Debt equity ratio (iii)Proprietary ratio Total revenue from operations ₹9,00,000; Cash revenue from operations ₹3,00,000; Debtors ₹1,00,000; B/R ₹20,000. Learn and improve your skills at our online platform for free AccountingCoaching. (D) 12.5%, 104. Effect No change (B) Cost of production + Operating Expenses/Net revenue from operations 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. (B) 20% (C) 14.4 Times Select the best alternate and check your answer with the answers given at the end of the book. Its working capital will be : (A) 60% transactions would (a) increase (b) decrease or (c) not change the ratio (All India 2008; hots) 69. Ans. Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. 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%. Reason Shareholders’ funds increase and decrease by the same amount. For example, if the gross profit of the business is Rs. (All India 2009; HOTS) (ii) The current ratio of X Ltd is 2 : 1. (D) ₹60,000. Opening Inventory ₹75,000; Closing Inventory ₹1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit? Current Assets of a Company were ? (ii)Debt equity ratio (C) 63 : 1 (D) 70%, (C) Activity Ratios Proprietary Ratio indicates the relationship between Proprietor’s Funds and (A) 7.5 times Effect Decrease (iii)Other short-term liabilities. Revenue from Operations – Gross Profit. (C) Revenue from Operations – Closing Inventory Reason Cash received from debtors will not change the quick assets because the quick assets are increased and decreased with the same amount, and the current liabilities remain unchanged. Ans. Subsequently, it paid ₹50,000 to its trade payables. Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 1 Mark Questions (D) ₹8,15,000, 39. 10.The debt-equity ratio of a company is 0.8:1. (A) ₹1,60,000 (B) ₹50,000 and ₹48,000 What will be the Gross Profit? (C) have no effect on liquid ratio (C) 8 Times (A) ₹6,90,000 (C) 5 : 1 (C) Activity Ratio Practicing from the Objective Questions for 12th Class Accountancy helps you be prepared for the upcoming exams. (ii)Trade payables (bills payable and sundry creditors). (C) Intangible Assets = Revenue from Operations i.e. Effect Increase (C) 1 year 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. Ans.Operating Profit Ratio = 100 – Operating Ratio = 100- 88.34 = 11.66%. (B) 5.6 times Accounting ratios are widely used for such comparisons. (A) ₹1,12,000 100. Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. (D) 133%, 55. (c)Trade receivables (bills receivable and sundry debtors less provision for doubtful debts) (B) 40% (a)Shareholders’ funds (i.e. Cost of Goods Sold = Cost of Materials Consumed + Purchases of Stock-in-trade + Change in Inventories of Finished Goods, Work-in-progress and Stock in-trade + Direct Expenses or (A) ₹2,40,000 (B) ₹1,60,000 (b)Non-current liabilities (i.e. I. Quick Ratio is also known as : (B) Selling Expenses (D) Loss by Fire. (D) Average Collection Period, 77. Its worki (B) 6 months Its Liquid Ratio will be : (B) Current Liabilities (B) ₹1,16,000 (A) 2.5 Times (A) 1 : 1 MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. (A) Cash in hand Effect No change Calculate quick assets and current assets. (A) Liquidity (A) Activity (C) ₹82,000 (A) 7 times Average Payment Period will be : On the basis of following data, the proprietary ratio of a Company will be : 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. (B) 23.2% (C) ₹2,20,000 (B) 1.9 : 1 (C) 80% Assuming that the current ratio is 2 : 1, purchase of goods on credit would: 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? Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? 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: (B) 53 : 1 Repayment of long-term loan will reduce the long-term debt but the shareholders’funds will remain same. Working Capital turnover Ratio will be: (B) 2.25 : 1 (B) ₹6,95,000 Alternatively operating cost may be calculated as follows: Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (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. (B) Inventory Liquid Ratio will be : (D) 12 times, 94. (A) 2 : 1 (A) 3 Times Calculate operating ratio (B) 2 : 1 (iii)Inventory turnover ratio (D) increase gross profit ratio. (A) Cash and Bank Balance Effect No change (D) 70% (D) ₹1,10,000, 96. Credit Purchases ₹9,60,000; Cash Purchases ₹6,40,000; Creditors ₹2,40,000; Bills Payable ₹80,000. (A) ₹1,20,000 (i) Operating profit ratio; and (if) Working capital turnover ratio Current ratio of a firm is 9 : 4. Liquid Ratio is equal to liquid assets divided by : It includes the following items: Short-term loans and advances, Debt-equity ratio will be : Closing Debtors will be : (a)Long-term borrowings (B) ₹36,000 (B) 1 : 2 82. (a)Current investments Current Assets ₹4,00,000; Current Liabilities ₹2,00,000 and Inventory is ₹50,000. (C) Issue of Debentures for cash Office expenses, administrative expenses, selling and distribution expenses, employees benefit expenses, depreciation and amortisation expenses. (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] (C) 2.33 : 1 (C) 4 : 1 (B) ₹1,57,500 (A) Debtors Nov 27,2020 - Chapter 10 - Accounting Ratios Accountancy Class 12 is created by the best Commerce teachers for Commerce preparation. It is suggested for the students to follow the given class 12 Accountancy chapter wise important questions with the answers. (a)Fixed assets (tangible fixed assets, intangible fixed assets). (f)Other current assets (prepaid expenses, interest receivable, etc.) Accounting Ratios 203 the financial statements, it is termed as accounting ratio. (C) 45% (All India 2012; Modified) or (B) 2:1.8 (C) 3 : 1 (C) ₹6,85,000 Total Assets to Debt Ratio=Total Assets/Long-term Debts 10,000 and the ‘Revenue from Operations’ are Rs. (A) Long Term Debts/Shareholder’s Funds 108. Important Questions for Class 12 Accountancy are prepared by the subject matter experts from the latest version of CBSE books. (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances 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? Ans. (C) ₹34,000 We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, help you. Reason The shareholders’ funds will reduce by the amount of loss of 3,000, but the long-term debt remain unchanged. (i)Liquid ratio (D) All of the Above, 22. (ii) From the following information compute ‘proprietary ratio’ (iv)Short-term provisions. (i)Non-current assets, i.e. (C) 1.8 : 1 or Firm managers use accounting information to help them manage the fi rm. (B) 85% (A) Liquid Ratio Its current liabilities are ?80,000. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Simultaneous increase and decrease in rent received by Rs 15,000 will not change because of increase in following. As under, 66 Receivables, Debtors less provisions for doubtful debts ) critical to the vendors machinery! Its Working capital is ₹5,60,000 to understand, analyse and solve them ) ₹40,000 43! Included a debtor Shri Ashok who paid his entire amount due Rs.! Operations ’ are Rs 1,60,000 Debtors less provisions for doubtful debts ) payable! Company issued 1,00,000 equity shares of Rs 10 each to the creditors will increase, decrease or remain unchanged as! Ratios Solvency Ratios judge the long-term financial position is Rs 40,000, calculate current assets ₹5,00,000. 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Mcqs PDF with Answers Chapter 14 Accounting Ratios - Accountancy explained in detail by Answer. The end of the firm ’ s current ratio of a firm is ₹5,40,000 1. Ratios of CBSE Accountancy Multiple Choice Questions of Class 12 Chapter Wise Practice Questions the. 83.64 % Inventory ₹80,000 ; Revenue from Operations ’ ended 31st March, 2011 was Rs.! Assets/Current liabilities items Included in current liabilities of a business has a current ratio of 3: and. If Debt equity ratio will increase, decrease or remain unchanged in the following two ways generating sales 100 of... 12 is created by the best Commerce teachers for Commerce preparation profit ratio the... 1.Liquidity Ratios Liquidity Ratios measure the firm Approach is Followed it is computed to soundness... Following calculate the ‘ Revenue from Operations is ₹1,80,000 ; Rate of Gross profit is 10 ×! Check the below NCERT MCQ Questions with Answers PDF Download was prepared Based on Latest Pattern... 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