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MCQs for CBSE Class 12 Accountancy: Jagran Josh brings to you list of important MCQs for CBSE Class 12 Accountancy Chapter 9, Accounting Ratios. You can also find attached a PDF download link, for future reference. This list of MCQ-type-questions has been prepared by our subject matter experts, as per CBSE Revised Syllabus(2023-24) and updated Exam Pattern.
Practise of these MCQs can prove to be useful for students aspiring to score good marks in upcoming CBSE Board Exams(2023-24). MCQ type questions have been recently introduced in the curriculum to inculcate the practical use of theoretical concepts, in students. Consistent practise of such questions can also help you prepare well for competitive exams such as JEE, NEET etc.
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Important MCQs for CBSE Class 12 Accountancy Chapter 9 are as follows:
1.Working Capital is the:
(a) Cash and Bank Balance
(b) Capital borrowed from the Banks
(c) Difference between Current Assets and Current Liabilities
(d) Difference between Current Assets and Fixed Assets
Answer. c) Difference between Current Assets and Current Liabilities
2.Which ratio is complimentary to each other?
a) Current and liquid ratio
b) Operating and operating profit ratio
c) Gross and net profit ratio
d) Trade receivable and trade payable ratio
Answer. b) Operating and operating profit ratio
3.Net Profit can be greater than Operating Profit when:
(a) Cost of Revenue from Operations is more than Operating Expenses
(b) Operating Expenses are more than Non-operating Expenses
(c) Non-operating Expenses are more than Non-operating Income
(d) Non-operating Expenses are less than Non-operating Income
Answer. d) Non-operating expenses are less than Non-operating income
4.Opening Inventory of a firm is ₹ 80,000. Cost of revenue from operation is ₹6,00,000. Inventory Turnover Ratio is 5 times. Its closing inventory will be:
(a) ₹ 1,60,000
(b) ₹ 1,20,000
(c) ₹ 80,000
(d) ₹ 2,00,000
Answer. a) Rs 1,60,000
5.Debt equity ratio is a measure of:
a) Short term solvency ratio
b) Profitability ratio
c) Long term solvency ratio
d) Activity ratio
Answer. c) Long term solvency ratio
6.The ideal Current ratio is:
(a) 1:2
(b) 2:1
(c) 1:1
(d) 40%
Answer. b) 2:1
7.What is the amount that will be showing other expenses in the statement of profit and loss?
(a) 24,000
(b) 14,100
(c) 9,900
(d) None of these
Answer. a) 24,000
8.'Return on Investment' (ROI) is calculated under:
(a) Liquidity Ratio
(b) Solvency Ratio
(c) Profitability Ratio
(d) Activity Ratio
Answer. c) Profitability Ratio
9.A company's Current Ratio is 2: 1. After cash payment to some of its creditors, Current Ratio will:
(a) Decrease
(b) As before
(c) Increase
(d) None of these
Answer. c) Increase
10.Total assets to debt ratio is categorized under:
a) Profitability ratio
b) Solvency ratio
c) Activity ratio
d) Liquidity ratio
Answer. b) Solvency ratio
11.Which of the following is not operating expenses?
(a)office expenses
(b) selling expenses
(c) bad debts
(d) loss by fire
Answer. d) loss by fire
12.Assertion (A): Liquidity Ratios are used to assess the short-term financial obligations of the firm.
Reason (R): Current Ratio and Acid-test Ratio are two liquidity ratios which measure the firm's ability to meet its current obligations in time.
In the context of the above two statements, which of the following is correct Codes:
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A)
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong.
Answer. a) Both Assertion and Reason are correct and Reason is the correct explanation of Assertion.
13.Sheetal Ltd. has a current ratio of 3:1. If its stock is Rs. 40,000 and total current liabilities are Rs. 75,000, the quick ratio will be:
a) 2.7:1
b) 2.47:1
c) 4:1
d) 2.36:1
Ans. b) 2:47:1
14.Assertion (A): If Gross Profit Ratio is 20%, goods for 50,000 sold to employees at cost will decrease the ratio.
Reason (R): There will be no change in Gross Profit Ratio, because both Cost of Revenue from Operations and Revenue from Operations will increase by the same amount
In the context of the above two statements, which of the following is correct?
(a) (A) and (R) both are correct and (R) correctly explains (A).
(b) Both (A) and (R) are correct but (R) does not explain (A).
(c) Both (A) and (R) are incorrect.
(d) (A) is correct but (R) is incorrect.
Answer. d) A is correct but R is incorrect
15.Which of the following is not an activity ratio?
a) Inventory turnover ratio
b) Interest coverage ratio
c) Working capital turnover ratio
d) Trade receivables turnover ratios
Answer. a) Inventory turnover ratio
To download MCQs for Class 12 Accountancy Chapter 9, click on the link below.
Important resources for CBSE Board Examination(2023-2024)
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