The Current Ratio after the payment will be : or (C) 2 : 1 Ideal Quick Ratio is : 1. Accounting ratios are widely used for such comparisons. CBSE issues sample papers every year for students for class 12 board exams. (iv) Issue of bonus shares Calculate return on capital employed. Question 12. Equity Share Capital ₹20,00,000; Reserve 5,00,000; Debentures ₹10,00,000; Current Liabilities ₹8,00,000. (B) ₹36,000 (B) 7.4 Times (i) Stock turnover ratio or Inventory turnover ratio The ratio indicates the number of times the stock is turned in sales during the accounting period, i.e. 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. (C) 1 : 3 (C) have no effect on Current ratio 29. (D) None of Above, 16. Calculate operating ratio (A) Sales efficiency (C) Cost of revenue from operations + Operating Expenses/Net Revenue from Operations 10,000 and the ‘Revenue from Operations’ are Rs. 1,50,000; Debtors ₹1,00,000; B/R ₹50,000. Average Collection Period will be : Calculate operating ratio : (A) 1 : 2 Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses (B) 80% (A) 29% Effect No change (a)Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. (ii)Working capital, i.e. (A) Current ratio, Accounts receivable (D) ₹2,00,000, 74. (D) ₹24,000, 45. (D) 70% (B) 4 months (A) 11%. (i)Debt equity ratio (ii) Working capital turnover ratio 21.From the following information, calculate any two of the following ratios (C) 3 : 2 prepaid expenses and cash, therefore it will not affect the value of current asset. On the basis of following data, the proprietary ratio of a Company will be : Generally, the ratio of 2 : 1 is considered as an ideal. Operating profit ratio is an indicator of operational efficiency of the business. Question and Answer forum for K12 Students. The sample papers have been provided with marking scheme. Patents and Copyrights fall under the category of: Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of goods on credit. Assuming that the current ratio is 2 : 1, purchase of goods on credit would: A Company’s Current Ratio is 2.4 : 1 and Working Capital is ₹5,60,000. Current assets include only those assets which are expected to be realised within …………………….. (ii)Trade payables (bills payable and sundry creditors). (A) ₹1,42,500 (B) ₹1,60,000 (A) 1.75 : 1 (A) 2.5 Times 34. (B) Current Liabilities Total Purchases ₹4,50,000; Cash Purchases ₹1,50,000; Creditors ₹50,000; Bills Payable ₹10,000. Ans. A Company’s Current Ratio is 3 : 1; Current Liabilities are ₹2,50,000; Inventory is ₹60,000 and Prepaid Expenses are ₹5,000. (B) 1.67 : 1 Ans. Ans.Operating Profit Ratio = 100 – Operating Ratio = 100- 88.34 = 11.66%. The entire NCERT textbook questions have been solved by best teachers for you. 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. (C) 2 : 1 (A) ₹33,000 Liabilities Approach Share Capital + Reserves and Surplus A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹2,00,000 and Inventory is ₹1,80,000. If you are appearing for CBSE Class 12th Board exams 2020, check this list of Chapter-wise important questions and answers from Accountancy. Classification of Ratios : Accounting ratios are used to analyse the financial position of the firm. Quick Assets do not include 92. (D) ₹1,10,000, 35. In case, statement of profit and loss is given, cost of revenue from operations i.e. Ans. When Liabilities Approach is Followed It is computed by adding (C) ₹1,00,000 (C) 5 Times (Delhi 2008; hots) Ans. (B) ₹1,57,500 shareholders’ funds. (b)Non-current liabilities (i.e. (B) 60% (C) Bank Balance (D) 37 : 1, 65. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, Classification of Accounting Ratios (D) G.P./Average Inventory, 70. (C) 8 times Ans. (A) ₹1,50,000 (iii)Total assets to debt ratio It establishes a relationship between total assets and total long-term debts. (i)From the following information, compute ‘debt equity ratio’ (D) 5 times, 95. Credit Purchases ₹6,00,000; Trade Payables Turnover Ratio 5; Calculate closing creditors, if closing creditors are ? cost of goods sold is computed by adding cost of materials consumed, purchases of stock-in-trade, changes in inventories of finished goods, work-in-progress and stock-in-trade and direct expenses Find over 1,500 Q&A for accounting and finances at AccountingCoach blog. Its Current Ratio will be : (D) 4 Times, (D) Profitability Ratios Total credit revenue from operations of a firm is ₹5,40,000. (A) ₹1,15,000 or A film’s credit revenue from operations is ₹3,60,000, cash revenue from operations is ₹70,000, Cost of reverse from operations is ₹3,61,200, Its gross profit ratio will be : (B) ₹4,80,000 (d)Short-term provisions (D) 9 Times, 84. Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. (B) Selling Expenses (A) ₹6,90,000 Reason Purchase of goods on credit will increase the current liabilities, but the quick assets remain unchanged. (A) 6.6 Times 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. (v)Sale of fixed assets at a loss of 13,000. (B) ₹60,000 18.The debt equity ratio of a company is 1:1 state giving reasons, (any four) which of the following would improve, reduce or not change the ratio All the solutions of Accounting Ratios - Accountancy explained in detail by … (B) Decrease Current ratio (A) Prepaid Expenses 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? Purchases ₹7,20,000; Office Expenses ₹30,000; Selling Expenses ₹90,000; Opening Inventory ₹1,40,000; Closing Inventory ₹80,000; Revenue from Operations ₹12,00,000. (D) .5 : 1, 61. Its Liquid Assets will be : (D) Bills Receivable, 12. Working capital turnover ratio – Classification of Ratios – Question 12. (C) Difference between Current Assets and Current Liabilities 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. (iv)Operating profit ratio Operating profit ratio establishes the relationship between the operating profit and i.e. (A) 2 Months = Cost of Materials Consumed + Purchases of Stock-in-trade + Changes in (b)Non-current trade investments. 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