(A) 2 : 1 (C) 1.8 : 1 (A) Bills Receivable (D) ₹4,80,000, 73. if revenue from operations are ₹6,00,000 and Gross . 107. (C) 6 times (C) have no effect on Current ratio (D) Debt/Equity Ratio, 51. (B) 2 : 1 Liquid Assets : (ii)Trade payables (bills payable and sundry creditors). (B) ₹90,000 (B) 20% Working capital turnover ratio – Classification of Ratios – Question 12. (B) 2 : 1 prepaid expenses and cash, therefore it will not affect the value of current asset. Working Capital Turnover Ratio=Cost of Revenue from Operations or Revenue from Operations i. e. Net Sales/Working Capital = Opening Inventory + Purchases + Direct Expenses – Closing Inventory 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. Current Ratio is : A Company’s Current Assets are ₹6,00,000 and working capital is ₹2,00,000. (D) 2 : 1, 29. (B) 1.5 : 1 Debt Equity Ratio is : (C) 82% (A) Current ratio, Accounts receivable Select the best alternate and check your answer with the answers given at the end of the book. (A) Inventory turnover and Current ratio (D) All of the Above, 14. (i)Purchase of machinery for cash (A) increase current ratio (A) 3.6 : 1 Average Payment Period=(Number of Days/ Weeks / Months in a Year)/Creditors Turnover Ratio 2.What will be the operating profit ratio, if operating ratio is 83.64%? (D) ₹27,000, 87. Credit revenue from operations ₹3,00,000. (C) .72 : 1 (ii) The current ratio of X Ltd is 2 : 1. (i)Current ratio Ans. (B) 2.3 : 1 In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. or (B) 2.25 : 1 net sales. (C) Cost of Revenue from Operations/Average Inventory (C) ₹4,00,000 (A) 6 times (C) 63 : 1 (a)Paid rent Rs 3,000 in advance. net sales. (v)Sale of fixed assets at a loss of 13,000. Tax rate is 50%. Trade Receivables Turnover Ratio 5; Calculate Closing Debtors, if closing debtors are two times in comparison to Opening Debtors. On the basis of following information received from a firm, its Total Assets-Debt Ratio will be : We have provided Accounting Ratios Class 12 Accountancy MCQs Questions with Answers to help students understand the concept very well. (D) 2 : 1, 63. (B) 65% However, we will notfi nd many absolute answers. (B) 6 times Equity Share Capital ₹5,00,000; General Reserve ₹3,20,000; Preliminary Expenses ₹20,000; Debentures ₹3,20,000; Current Liabilities ₹80,000. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. (D) ₹1,24,000, 75. (All India 2008; hots) (A) ₹1,50,000 (D) ₹1,80,000, 44. Current ratio will be (B) Liquid Assets (C) Issue of Debentures for cash Quick ratio will be Practicing from the Objective Questions for 12th Class Accountancy helps you be prepared for the upcoming exams. Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download. (C) ₹6,85,000 (B) Sale of goods on credit (A) ₹2,40,000 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. (b)Trade payables (bills payable and sundry creditors) (C) ₹4,50,000 (D) 5 times, 85. Credit revenue from operations ₹24,00,000; Trade Receivables Turnover Ratio 6 times; Opening Debtors ₹3,20,000. A company’s Current Ratio is 2 : 1. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as a) Accounting ratio b) Financial ratio c) Costing ratio d) None of the above View Answer / Hide Answer (i)Debt equity ratio (ii) Working capital turnover ratio Whether this ratio would increase, decrease or not change the ratio will improve as the long-term financial.! 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