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 - 5
Question 1:Â
In debt equity ratio, debt refers to
(a) Short term debts
(b) Total debts
(c) Shareholders’funds
(d) Long term borrowings and long term debts
Correct Answer – (D)
Question 2:Â
Long term solvency ratio is judged by which of the following ratio?
(a) Debt equity ratio
(b) Total assets turnover ratio
(c) Liquidity ratios
(d) Operating ratio
Correct Answer – (C)
Question 3:Â
Which of the following is not considered in the ratio analysis as per guidance notes?
(a) Fixed Assets
(b) Share capital
(c) Other Non-current Assets
(d) Non-current Assets
Correct Answer – (C)
Question 4:Â
Acid Test ratio comes under:
(a) Liquidity ratio
(b) Solvency ratio
(c) Profitability ratio
(d) Activity ratio
Correct Answer – (A)
Question 5:Â
The formula for finding out Debt-Equity Ratio is:
(a) Long-term Debts/Shareholders’ Funds
(b) Debentures/Equity Capital
(c) Net Profit/Total Capital
(d) None of these
Correct Answer – (A)
MCQ Questions Class 12 Accounting Ratios With Answers
Question 6:Â
Which of the following ratios provide solvency position of a business in the long run?
(a) Liquidity Ratios
(b) Solvency ratios
(c) Profitability ratios
(d) Turnover ratios
Correct Answer – (B)
Question 7:Â
Which of the following will increase the current ratio where it is 2 : 1 ?
(a) Payment to creditors
(b) Conversions of receivables into cash
(c) Purchase of goods on credit
(d) Purchase of goods for cash
Correct Answer – (A)
Question 8:Â
Current assets are those assets which are convertible into cash within:
(a) One month
(b) 6 months
(c) 12 months
(d) none of these
Correct Answer – (C)
Question 9:Â
The two basic measures of operational efficiency of a company are
(a) Inventory Turnover Ratio and Working Capital Turnover Ratio
(b) Liquid Ratio and Operating Ratio
(c) Liquid Ratio and Current Ratio
(d) Gross Profit Margin and Net Profit Margin
Correct Answer – (A)
Question 10:Â
Debt-equity ratio is :
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio
