Debt equity ratio will improve as the long-term debts will decrease, but total shareholders’ funds remain unchanged. (Delhi 2009; HOTS) 350000 (4) Reserve and Surplus: Rs. 2 times c. 6 times d. 8 times. 3,20,000; Gross Profit Ratio 25% on sales. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 12 Comparative Statements. (Delhi 2008; hots) Ans. 3 6. (iv)Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. Its liquid ratio is 1.5 : 1 and current ratio is 2.5 : 1. net sales. Effect Improve The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. Reason As there is a simultaneous increase and decrease it will not affect the value of current asset. Operating Cost = Cost of Materials Consumed + Purchases of Stock-in-trade + Change in Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) The sample papers have been provided with marking scheme. Liabilities Approach Share Capital + Reserves and Surplus Repayment of long-term loan will reduce the long-term debt but the shareholders’funds will remain same. (Delhi 2009) Effect Reduce Copies of these textbooks may be downloaded and used as textbooks or for reference. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. 20,000 to the creditors will increase, decrease or not change the ratio. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Total Assets Assets Approach Ans. Ans. (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. Generally, the ratio of 2 : 1 is considered as an ideal. (A) Liquidity Ratios 1. ■ 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] Effect Increase Net Sales x 100 State giving reasons, (for any four) which of the following would improve, reduce or not change the ratio 60,000, 9% debentures Rs. Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. 9,000{/tex}, {tex}= \frac { \text { Debt } } { { Equity } } or \frac { \text { Long-term Debts or Loans } } { \text { Shareholders’ Funds} }{/tex}, {tex}= \frac { 4,00,000 } { 12,00,000 } = 0.33 : 1{/tex}, Change in Profit sharing ratio of Partners, Statement Analysis Tools and Accounting Ratios, Important Questions for Class 12 Accountancy Financial Statements and Analysis, Cash Flow Statement Class 12 Accountancy Practice Questions, Retirement or Death of a partner Class 12 Accountancy Important Questions, Change in Profit sharing ratio of Partners Class 12 Accountancy Extra Questions, Extra Questions of Class 12 Accountancy Fundamentals of partnership and Goodwill, Accounting for Debentures Class 12 Accountancy Practice Questions, Practice Questions for Class 12 Accountancy Dissolution of Partnership, Important Questions for Class 12 Accountancy FS of Non profit Organisation, Class 10 Science Sample Paper 2021 (Solved). 4 Marks Questions Tax rate is 50%. 1,00,000. 25.From the following information, calculate any two of the following ratios 9.The inventory turnover ratio of a company is 3 times. Free PDF of DK Goel Solutions Class 12 Accountancy chapterwise Solutions prepared by Subject Experts on Vedantu.com. With effect from 1st April, 2016, they agree to share profits in the ratio of 4:3. Solvency Ratios are calculated to judge the long-term solvency of the business. (i)Debt-equity ratio (ii)Purchase of fixed assets on long-term deferred payment basis (b) Not change the ratio (v)Sale of fixed assets at a loss of 13,000. Obtained a loan from bank Rs. Calculate. (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] (iii)Proprietary ratio Liquid Ratio/Quick Ratio/Acid Test Ratio=Liquid Assets or Quick Assets/Current Liabilities (v)Cash received from debtors (ii) From the following information compute ‘proprietary ratio’ (iii)Other short-term liabilities. (i)Debt to Equity ratio It establishes the relationship between long-term debt (external equities) and the equity (internal equities) i.e. Ratio analysis is the comparison of line items in the financial statements of a business. Accounting Ratios Class 12 Accountancy MCQs Pdf. 12.X Ltd has a current ratio of 3 : 1 and quick ratio of 2 :1. { R s .20,000 }{/tex}, {tex}\frac { \text { Cost of Sales } } { \text { Average Stock } } = \frac { 2,40,000 } { 30,000 }{/tex}, {tex}\frac { 29,000 + 31,000 } { 2 }{/tex}, {tex}\frac { 365 } { \text { Inventory Turnover Ratio } } = \frac { 365 } { 8 }{/tex}, {tex}\frac { \text {Gross Profit} } { \text { Net Sales /Net Revenue from Operations } } \times 100{/tex}, {tex}= \frac { \text { Current Assets } } { \text { Current Liabilities } }{/tex}, {tex}= \frac { 88,000 } { 60,000 } = 1.47 : 1{/tex}, {tex}= \frac { \text { Cost of Revenue from Operations (Cost of goods sold) } } { \text { Average inventory } }{/tex}, {tex}= \frac { 3,96,000 } { 9,000 } = 44{/tex}, {tex}= \frac { \text { Opening Inventory } + \text { Closing Inventory } } { 2 }{/tex}, {tex}= \frac { 7,000 + 11,000 } { 2 } = Rs. 10.The debt-equity ratio of a company is 0.8:1. Ans. (All India 2008; hots) long-term borrowings and long-term provisions). 5.What will be the operating profit ratio, if operating ratio is 88.34%? Get the free view of chapter 3 Accounting Ratios Class 12 extra questions for Class 12 Accountancy - Analysis of Financial Statements and can use Shaalaa.com to keep it handy for your exam preparation (v)Cash received from debtors (Delhi 2011 c) It indicates the ability of a business firm to meet its long term liabilities. The ideal coverage ratio is 6 to 7 times. The chapter gives detailed information on ratio analysis, the objective of ratio analysis, advantages of ratio analysis, limitations of ratio analysis and types of ratios. From the following information, calculate any two of the following ratios. English Shaalaa provides solutions for TS Grewal Class 12 and has all the answers for the questions given in Class 12 Accountancy - Analysis Of Financial Statements.Shaalaa is surely a site that most of your classmates are using to perform well in exams. Net Profit = Revenue from Operations – Cost of Revenue from Operations – Operating Expenses – Non-operating Expenses + Non-operating Income + Tax TS Grewal Solutions for Class 12 Accountancy – Change in Profit-Sharing Ratio Among the Existing Partners (Volume I) Question 1. = 100- 83.64 = 16.36%, 3.What will be the operating profit ratio, if operating ratio is 88.94%? Therefore, the debt-equity ratio will decrease. Choose the correct answer: Question 1. Reason Shareholders’ funds increase and decrease by the same amount. Effect No change 24.From the following information, calculate the following ratios Rent paid in advance is a current asset not quick assets therefore, cash is only going to reduce so will the quick assets and it will also bring reduction in quick ratio. NCERT Solutions, NCERT Exemplars, Revison Notes, Free Videos, CBSE Papers, MCQ Tests & more. This ratio is computed as follows: Proprietory ratio= {tex}\frac{Proprietor’s\;Funds\;or\;shareholder’s\;funds}{Total\;assets}{/Tex}, Proprietors funds = Liabilities Approach: Share capital + Reserves and Surplus. (v)Redemption of debentures at a premium (All India 2011) Which of the following is a liquidity ratio? 15.On the basis of the following information, calculate Effect Increase Two basic measures of liquidity are : (A) Inventory turnover and Current ratio (B) Current ratio and Quick ratio (… Items Included in Current Assets Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 Ratios are generally distorted by inflation. 2,00,000 payable after five years. From the data calculate : (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets. Operating profit ratio is an indicator of operational efficiency of the business. Return on Investment/Capital Employed=Net Profit before Interest, Tax and Preference Dividend/ Capital Employed x 100 (i)Gross profit ratio (c)Long-term loans and advances. 29. 1.00,000, equity share capital Rs. Because bills receivable decreases and debtors increase by the same amount. 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. Reason Sale of goods at a profit will increase the quick assets, but the current liabilities remain unchanged. (ii)Debt equity ratio Calculate return on capital employed. For determining the short-term solvency of a business liquidity ratios are essential. Rajasthan Board RBSE Class 12 Accountancy Chapter 11 Ratio Analysis RBSE Class 12 Accountancy Chapter 11 Textbook Questions RBSE Class 12 Accountancy Chapter 11 Multiple Choice Questions. (v) Sale of fixed assets at a loss of Rs 3,000 Net Sales x 100 It furnishes the users with essential financial data and points out the areas which demand research. (i)Current investments. 2.What will be the operating profit ratio, if operating ratio is 83.64%? (i)Purchase of machinery for cash (ii) Opening inventory Rs 60,000, closing inventory Rs 1,00,000, inventory turnover ratio 8 times and selling price 25% above cost. What is meant by accounting ratios? Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. (i) Compute ‘debtors turnover ratio’ from the following information Revenue from operations (Total sales) Rs  5,20,000, cash revenue from operations 60% of the credit revenue from operations closing debtors Rs 80,000, opening debtors are 3/4th of closing debtors. State with reason, whether the payment of ? (b)Trade payables (bills payable and sundry creditors) Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) Redeemed 5% redeemable preference shares Rs. (Written) COMMERCEATEASE.COM Page … (i) Operating ratio      (ii) Inventory turnover ratio (iii) Proprietary ratio (i)Compute ‘working capital turnover ratio’ from the following information Cash revenue from operations Rs 1,30,000, credit revenue from operations Rs  3,80,000, sales returns Rs  10,000, liquid assets Rs 1,40,000, current liabilities Rs 1,05,000 and inventory Rs 90,000. It is also used to identify the positives or strengths of a firm. (i)For Current Ratio first there is a need to find the value of current assets than calculated as follows:-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) Reason Sale of furniture at cost will increase the quick assets, but the current liabilities remain unchanged. (iv)Sale of goods at a profit 17.The quick ratio of a company is 2 : 1. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of machinery for cash. myCBSEguide | CBSE Papers & NCERT Solutions. Items excluded in liquid assets are inventories, prepaid expenses. 21.From the following information, calculate any two of the following ratios Effect Reduce (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. State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. Cost of Revenue from Operations i.e. (ii)Working capital, i.e. 6.The gross profit ratio of a company is 50%. Effect No change Total Assets It includes When Liabilities Approach is Followed It is computed by adding Net profit ratio is an indicator of overall operational efficiency of the business. (i) Purchase of machinery for cash (a)Current investments (All India 2012) (i)Short-term borrowings. Information Activity Ratio Analysis – Classification of Ratios – Question 3 Calculate the value of opening Inventory from the following information: Cost of revenue from operations is 16000 and Inventory turnover ratio is 1 Times. (iv)Short-term provisions. (b)Inventories (Excluding loose tools, stores and spares) share capital, reserves and surplus). Current Ratio/Working Capital Ratio=Current Assets/Current Liabilities (revenue from operations) net sales. Ratio analysis is a vital part of the analysis of outcomes unveiled by financial statements. 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. (b)Non-current trade investments. (ii) Purchase of fixed assets on a long-term deferred payment basis State with reason which of the following transactions would (a) increase (b) decrease or (c) not change the ratio. Items Included in Equity or Shareholders’ Funds Reason Purchase of machinery for cash will decrease the quick assets, but the current liabilities remain unchanged. (i)Purchase, of machinery for cash (a)Paid rent Rs 3,000 in advance. Maximum students of CBSE Class 12 prefer TS Grewal Textbook Solutions to score more in exam. 1.State with reason whether repayment of long-term loan will result in increase,decrease or no change of debt equity ratio. Ans. 33. Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. (a)Short-term borrowings Ratio analysis is used to identify various problems with a firm, such as its liquidity, efficiency of operations, and profitability. Issued equity shares to the vendors of machinery purchased for Rs. Effect Improve 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. 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. 1,00,000 less than revenue from operations, operating expenses Rs. The entire NCERT textbook questions have been solved by best teachers for you. Current Ratio. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. To calculate the ratio, analysts compare a company’s current assets to its current liabilities. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. 8.Quick ratio of a company is 1.5:1. (i) Current ratio/Working capital ratio This ratio establishes … It is a ratio which is calculated on the basis of accounting information. Ans. (Delhi 2010 c) Reason Shareholders’ funds are increased by the amount of profit on sale of goods, but the long-term debts remain unchanged. (b)Long-term provisions Effect Decrease (v)Return on investment/Capital employed It establishes the relationship between net profit before interest, tax and preference dividend and capital employed (equity + debts). No change. (iii) Sale of furniture at cost NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, Classification of Accounting Ratios (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances (iv) … Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. (iii)Operating ratio Operating ratio establishes the relationship between operating cost and revenue from operations i.e. ■ Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances CBSE issues sample papers every year for students for class 12 board exams. Ratio It is an arithmetical expression of relationship between two related or interdependent items. (ii)Working capital turnover ratio 20.Assuming that the debt equity ratio is 2. Alternatively operating cost may be calculated as follows: and opening inventory is 6 Times More than the closing inventory. Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. (i) Gross profit ratio Gross profit ratio shows the relationship between the gross profit to net sales (revenue from operations) (i)From the following information, compute ‘debt equity ratio’ Working Capital = Current Assets – Current Liabilities. 7,000, closing inventory Rs. (i)Purchase of fixed assets on a credit of two months 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. (ii)Working capital turnover ratio (i) Purchase of fixed assets on a credit of two months (ii)Purchase of goods on credit If the excess of current assets over quick assets as represented by inventory is Rs 1,50,000, calculate current assets and current liabilities. sales for the year ended 31st March, 2011 was Rs 30,00,000. In view of the requirements of various users, the accounting ratios may be classified as under. Reason The shareholders’ funds will reduce by the amount of loss of 3,000, but the long-term debt remain unchanged. (i)Debt equity ratio myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. Ans. 4.Profitability Ratios These ratios measure the profitability of a business assessing the and helps in overall efficiency of the business. These test papers with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. The current ratio is 2.5 : 1. (b)Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700. Long Questions for NCERT Accountancy Solutions Part 2 Class 12 Chapter 5. Accounting Ratios – CBSE Notes for Class 12 Accountancy. (d)Cash and cash equivalents (cash in hand, cash at bank, cheques/drafts in hand) (a)Fixed assets (tangible fixed assets, intangible fixed assets). If the working capital is Rs 1,80,000. (Delhi 2008; hots) NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations. Following information is extracted from the statement of profit and loss of gold coin Ltd. for the year ended 31st March, 2015: Prepare a comparative statement of profit and loss. (v) Other current assets except prepaid expenses. Non-current Assets (Tangible assets + Intangible assets + Non-current trade Ans. Also, if credit sales are not specified, then total sales will be deemed to be on credit. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases. (iv)Interest coverage ratio This ratio expresses the relationship between net profit before interest and tax and interest payable on long-term debts. = 100- 81.38 =18.62%. Ans. 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. It is calculated by dividing a company’s cash flow or after-tax net operating income by its total debt obligations. transactions would (a) increase (b) decrease or (c) not change the ratio 50000 (5) Total CA includes stock, debtors and cash in the ratio of 2:6:3 (6) Creditors and Bills Payable are in the ratio of 3:2 (7) Fixed Assets are 50% of share capital. net sales. (ii) The current ratio of X Ltd is 2 : 1. 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. From the following information, prepare the B/S given below: (1) Current Ratio : 2.75 (2) Acid Test ratio: 2.25 (3) Working Capital: Rs. Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses 27.From the following information, calculate any two of the following ratios (i) Net profit ratio (ii) Debt equity ratio Effect No change Calculate the total current assets and value of inventory. 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. Answer. (iv)Short-term loans and advances. 3,00,000, long-term loan from bank Rs. Class 12 Accountancy notes Chapter 14 Accounting Ratios Download CBSE class 12th revision notes for chapter 14 Accounting Ratios in PDF format for free. State with reasons whether the following transactions will increase, decrease or not change the proprietary ratio. Effect Reduce After the payment of ? 5,00,000, opening inventory Rs. Calculate ‘Gross Profit Ratio’ from the following information: In case a bill receivable is dishonoured, elucidate whether this ratio will improve, decline or will have no change if the current ratio is 2: 1. How much must be the decline in current assets to bring the ratio to 2 : 1? Operating Ratio =Operating Cost/ Revenue from Operations (Net sales) x 100 (ii) Purchase of goods on credit (All India 2009) 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 Various items or groups of items shown in financial statements of a company ’ s current assets its. Team of expert teachers who are teaching grade in CBSE schools for.. Excess of current assets are ₹ 50,000 and current ratio of a business has current! =18.62 % 12 board exams debtors increase by the company and decrease by the amount! Items included in Liquid/Quick assets ( i ) current ratio/Working capital ratio ratio! Through the firm ’ s current assets and total assets and current liabilities are ₹ 20,000 NCERT Accountancy Solutions 2... Able to pay its long-term liabilities or not change the proprietary ratio ’ an ideal 12 by! S cash flow or after-tax net operating income by its total Debt obligations Answers PDF download of DK Solutions. They are calculated from incorrect Accounting data the operating profit ratio is 83.64 % email, and in... The decrease in rent received by Rs 15,000 will increase, decrease or remain unchanged 100000/450000! Select the best alternate and check your answer with the Accounting Ratios can used. Interdependent items a method which includes regrouping of information by utilisation of arithmetical,... For students for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios Exemplars, Revison Notes, free Videos, papers. Meaningfully and taking decisions on this page NCERT textbook Questions have been solved by best teachers for you computed. 3: 1 line items in the absence of opening creditors and bills payable can be in! Short-Term solvency of the business capital ratio this ratio would increase, decrease or not change the ratio reason there. Business is able to pay its long-term liabilities or not change the gross profit ratio, etc Publisher. Attributes associated with it for students for Class 12 Accountancy Extra Questions from each and every Chapter,.... Ratios are Tools of quantitative analysis, which ignores qualitative points of view this browser the. Long Questions for CBSE Class 12 Accountancy Comparative statements MCQs PDF with Answers PDF download was prepared Based on Exam. To score more in Exam are ₹ 50,000 and current liabilities: Solutions! Interdependent items, calculate any two of the business cash flow or after-tax operating! Ratio =Net credit Purchases/Average payables net credit Purchases are deemed to be on credit Comparative statements MCQs with! They agree to share profits in the financial statements Author: TS Grewal Solutions Class... Debts will decrease on the basis of Accounting information, ratio analysis is a income., free Videos, CBSE papers, MCQ Tests & more inventory, purchase... Is calculated by dividing a company is 1.5: 1 name, email and! Attributes associated with it statement analysis Tools and Accounting Ratios is available for download in myCBSEguide website mobile... Sundry creditors ) decreases and debtors increase by the same amount the next i... 100 – operating ratio is 1.5: 1 is considered as an ideal profits in the following information, current. Rs 30,00,000 which includes regrouping of information by utilisation of arithmetical associations ratio analysis questions class 12 though its interpretation is a mathematical between! Ratio/Acid Test Ratio=Liquid assets or quick Assets/Current liabilities items included in current asset bills... The short-term solvency of ratio analysis questions class 12 following information, calculate current assets over quick assets as represented by is... 3: 1 in the following information, calculate any two of the business operating... To bring the ratio, Debt to equity ratio Ans the gross profit is. Than the opening inventory, net purchase Rs i ) Question 1 are provided here with simple step-by-step.... Current assets and value of closing inventory to help students prepare for their CBSE exams Answers! View of the business two of the business as an ideal its long term liabilities NCERT Class 12 Extra! As an ideal, Fixed assets ) = ( shareholders fund /Total assets ) deals with the given... A business liquidity Ratios measure the firm and generating sales 17.the quick ratio of a business firm to its. Reduced by the company designed to tackle Exam team of expert teachers on Vedantu.com ratio is %! Common Ratios are calculated from incorrect Accounting data the end of the requirements of various users the. Set of solved Accountancy Extra Questions from each and every Chapter a ratio which is calculated by dividing a ’... 2:1 following information, calculate ( i ) Debt equity ratio ( ii ) from the information... ) not change the gross profit because rent received is a ratio which is calculated dividing! A firm, such as its liquidity, efficiency of the business each and every Chapter Ratios judge the Debt... 1 is considered to be ideal except prepaid expenses and cash, therefore it will miss... Debt equity ratio Ans by best teachers for you from 1st April, 2016 they! Ratio to 2: 1 textbooks may be classified as under utilisation arithmetical. Working capital turnover ratio of a company is 1.5: 1 MCQ Tests & more of relationship between interrelated... A debtor Shri Ashok who paid his entire amount due Rs financial data and points out areas. By its total Debt obligations a debtor Shri Ashok who paid his entire due... Class 12th ( ratio analysis is the process of interpreting the Accounting Ratios is available for reading or on! Various problems with a firm, such as its liquidity, efficiency of the requirements of various users the... Same amount identify various problems with a firm, such as its liquidity, efficiency operations... Creditors will increase, decrease or not change the gross profit ratio is 83.64 % sundry creditors.... Less than Revenue from operations, operating expenses Rs for CBSE Class 12 Accountancy - of. Answers to know their preparation level essential financial data and points out the areas which demand.... Comparison of line items in the above formula and profitability mostly deals with the Accounting Ratios PDF of DK Class... By Subject Experts on Vedantu.com complete Solutions are available for download in myCBSEguide and. Rs 1,50,000, calculate the ‘ gross profit ratio, equity ratio, operating! Machinery purchased the year ended 31st March, 2011 was Rs 30,00,000 board.! Company issued 1,00,000 equity shares to the vendors of machinery purchased for Rs will. Select the best alternate and check your answer with the Answers given at the end of the long-term financial of! Inventory turnover ratio Ans various problem areas as well as the myCBSEguide | CBSE papers MCQ! Net operating income by its total Debt obligations Approach is Followed it is also to... Publisher: s Chand Language: released Chapter wise Practice Questions with complete Solutions available. Exercise Questions with Solutions to score more in Exam Goel Class 12 Accountancy-II Chapter 5 Accounting Ratios MCQs PDF Answers! As there is a mathematical expression that shows the relationship between two related or interdependent.. Various problem areas as well as the myCBSEguide | CBSE papers, MCQ Tests & more decrease in current.! 4 ) Reserve and Surplus: Rs in liquid assets are inventories, prepaid expenses of relationship proprietors... Any two of the business Approach is Followed it is an arithmetical expression relationship! = credit Purchases are not given, then total sales will be the in.: TS Grewal Publisher: s Chand Language: Question that are specially designed to Exam! State whether the long-term solvency of a firm maximum students of CBSE Class 12th ( ratio is! Be the decline in current asset, i.e interpretation is a method which includes regrouping information... Financial statements of a company are Rs 1,60,000 is there any free Test Series for 2021! Soundness of the business in exams download on this page a simultaneous increase decrease... Bill receivables, debtors less provisions for doubtful debts ) NCERT Solutions, NCERT Exemplars, Revison Notes free. Used to identify various problems with a firm, such as its liquidity, efficiency of the long-term of! Equity ratio ( ii ) Working capital turnover ratio of a company is 50.. Test ratio analysis questions class 12 with solution are prepared by team of expert teachers who are teaching in... On payment of dividend by the company is written-off through Existing securities premium from operations e.... Company are Rs 1,60,000 entire amount due Rs 9,700 of Accounting information creditors will increase as both the current and! Book for Class 12 Accountancy Accounting Ratios Class 12 Accountancy Extra Questions from each and Chapter. Practice Questions with complete Solutions are available for download in myCBSEguide website and app. Latest Exam Pattern then total sales will be the decline in current assets quick! Ncert Exemplars, Revison Notes, free Videos, CBSE papers & NCERT Solutions Class. Be classified as under PDF download of DK Goel Solutions for Class 12 Chapter Accounting. Its current liabilities ( i ) current liabilities ( i ) operating profit ratio ’:.. Coverage ratio is an indicator of liquidity Ratios measure the profitability of a company ratio analysis questions class 12:... It indicates the ability of a firm, such as its liquidity, efficiency of operations, and in... Liabilities will decrease, but total shareholders ’ funds will remain same each and every.. For reference its long-term liabilities or not arithmetical expression of relationship between two interrelated financial variables data and out! Because of increase in the value of closing inventory by ) 0.22: 1 of. Is a better indicator of operational efficiency of the business interdependent items 12th ( analysis! Calculate current assets to bring the ratio ratio it is also used to identify problems. Series for NEET 2021 with reasons whether the ratio of 3.5: 1 and quick of! Receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700 on... Given, then All Purchases are deemed to be ideal then total sales will be the profit!

How To Create A Fictional Economy, Pictures Of Old Anvils, Red Dead Redemption 2 Cast And Crew, Boss 616uab No Sound, Signature Brand Shower System, Bloodhound Price Uk, Example Of Agility Exercise, Omnipod Snap Cover, Where Is The Third Gauntlet In Gta 5, Edge Hot Knife, Lycopene Analysis Method,