MCQ Questions Class 12 Accounting Ratios With Answers

CBSE Class 12 Accounting Ratios Multiple Choice Questions with Answers. MCQ Questions Class 12 Accounting Ratios with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Accounting Ratios with Answers to know their preparation level.

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MCQ Questions Class 12 Accounting Ratios with Answers - Set - 4

Question 1:

Which of the following transactions will improve the current ratio ?
(a) Purchase of good for cash
(b) Cash received from customers
(c) Payment of creditors
(d) Credit purchase of goods

Check Answer

Correct Answer – (A)

Question 2:

To test the liquidity of a concern which of the following ratios is useful ?
(a) Capital Turnover Ratio
(b) Acid Test Ratio
(c) Stock Turnover Ratio
(d) Net Profit Ratio

Check Answer

Correct Answer – (B)

Question 3:

The term‘Current Assets’include
(a) Long-term Investment
(b) Short-term Investment
(c) Furniture
(d) Preliminary Expenses

Check Answer

Correct Answer – (B)

Question 4:

The two basic measures of liquidity are :
(a) Inventory Turnover and Current Ratio
(b) Current Ratio and Liquid Ratio
(c) Current Ratio and Average Collection Period
(d) Current Ratio and Debtors Turnover Ratio

Check Answer

Correct Answer – (B)

Question 5:

Which of the following assets is not taken into consideration in calculating acid-test ratio ?
(a) Cash
(b) Bills Receivable
(c) Stock
(d) None of these

Check Answer

Correct Answer – (C)

MCQ Questions Class 12 Accounting Ratios With Answers

Question 6:

The formula for ascertaining Total Assets to Debt Ratio is:

(a) ^{(Current Assets)} / _{(Current Liabilities)}

(b) ^{(Current Liabilities)} / _{(Liquid Assets)}

(d) None of them.

Check Answer

Correct Answer – (C)

Question 7:

Liquid Ratio is also known as:
(a) Current Ratio
(b) Quick Ratio
(c) Capital Ratio
(d) None of these

Check Answer

Correct Answer – (B)

Question 8:

The term ‘Current Liabilities’ does not include: .
(a) Sundry Creditors
(b) Debentures
(c) Bills Payable
(d) Outstanding Expenses

Check Answer

Correct Answer – (B)

Question 9:

When Cash is 7 10,000 Stock is 7 25,000, B/R is 7 5,000 Creditors is 7 22,000 and Bank Overdraft is 7 8,000 then current ratio is :
(a) 2 : 1
(b) 4 : 3
(c) 3 : 4
(d) 1 : 2

Check Answer