# CBSE Class 12 Accountancy Ratio Analysis Worksheet

Read and download free pdf of CBSE Class 12 Accountancy Ratio Analysis Worksheet. Students and teachers of Class 12 Accountancy can get free printable Worksheets for Class 12 Accountancy in PDF format prepared as per the latest syllabus and examination pattern in your schools. Standard 12 students should practice questions and answers given here for Accountancy in Grade 12 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 12 Accountancy Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems with solutions on daily basis to get more score in school exams and tests

## Worksheet for Class 12 Accountancy Part 2 Chapter 5 Accounting Ratios

Class 12 Accountancy students should refer to the following printable worksheet in Pdf for Part 2 Chapter 5 Accounting Ratios in standard 12. This test paper with questions and answers for Grade 12 Accountancy will be very useful for exams and help you to score good marks

### Class 12 Accountancy Worksheet for Part 2 Chapter 5 Accounting Ratios

MCQ Questions for NCERT Class 12 Accountancy Ratio Analysis

(a) Debtors
(b) Bills receivables
(c) both (a) and (b)
(d) Either (a) or (b)

Question. 100- Operating Profit Ratio is equal to
(a) Operating Ratio
(b) Operating Net profit Ratio
(c) Gross Profit Ratio
(d) Current ratio

Question. Liquid Assets=
(a) Current Assets-Inventory
(b) Current Assets- (Inventory + prepaid Expenses)
(c) Current Assets + Inventory
(d) None of the above

Question. Debts to Equity ratio=
(a) Debitd/Equity
(b) Debts/Shareholders Fund
(c) Both (a) and (b)
(d) None of these

Question. Activity Ratio Also Known As
(a) Performance Ratio
(b) Turnover Ratio
(c) Both (a) and (b)
(d) None of the above

Question. Which of following is not Activity Ratio?
(a) Inventory Turnover Ratio
(c) Interest coverage Ratio
(d) All of these

Question. Inventory Turnover Ratio=
(a) Cost of revenue from operation/Average Inventory
(b) Cost of revenue from operation/Opening Inventory
(c) Cost of revenue from operation/Closing Inventory
(d) None of these

Question. Ideal Current Ratio is
(a) 3:1
(b) 2:2
(c) 2:1
(d) 1:1

Question. Assuming liquid ratio of 1.2 : 1, cash collected from debtors would :
(a) increase liquid ratio
(b) decrease liquid ratio
(c) have no effect on liquid ratio
(d) increase gross profit ratio

Question. If Trade Payable turnover ratio shows a high turnover ratio it means
(a) Availability of less credit or fast payment
(b) Profitability of the firm
(c) Net Profit
(d) Shows after how much times funds are collected

Question. Activity Ratios is relate to
(b) Profit
(b) Sales or cost of goods sold
(c) Loss
(d) None of the options

Question. Establishes the relationship between long-term debt (external equities) and the equity (internal equities)
(a) Quick Ratio
(b) Test Ratio
(c) None of the options
(d) Debt to Equity ratio

Question. Which of the following transactions will improve the Current Ratio :
(a) Cash Collected from Trade Receivables
(b) Purchase of goods for cash
(d) Credit purchase of Goods

Question. Total credit revenue from operations of a firm is Rs.5,40,000. Average collection period is 3 months. Opening debtors are Rs. 1,10,000. Its closing debtors will be :
(a) Rs.1,35,000
(b) Rs.1,60,000
(c) Rs.2,20,000
(d) Rs.1,80,000

Question. On the basis of following data, the cost of revenue from operations by a company will be : Opening Inventory Rs.70,000; Closing Inventory Rs.80,000; Inventory Turnover Ratio 6 Times.
(a) Rs.1,50,000
(b) Rs.90,000
(c) Rs.4,50,000
(d) Rs.4,80,000

Question. A Company’s Current Assets are Rs. 8,00,000 and its current liabilities are Rs.4,00,000. Subsequently, it purchased goods for Rs. 1,00,000 on credit. Current ratio will be
(a) 2 : 1
(b) 2.25 : 1
(c) 1.8:1
(d) 1.6:1

Question. On the basis of following data, a Company’s Total Assets-Debt Ratio will be: Working Capital Rs.2,70,000; Current Liabilities Rs.30,000; Fixed Assets Rs.4,00,000; Debentures Rs.2,00,000; Long Term Bank Loan Rs. 80,000.
(a) 37%
(b) 40%
(c) 45%
(d) 70%

Question. Revenue from operations is Rs. 1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?
(a) Rs.45,000
(b) Rs.36,000
(c) Rs.40,000
(d) Rs.60,000

Question. On the basis of following data, the Debt-Equity Ratio of a Company will be: Equity Share Capital Rs.5,00,000; General Reserve Rs.3,20,000; Preliminary Expenses Rs.20,000; Debentures Rs.3,20,000; Current Liabilities Rs.80,000.
(a) 1 : 2
(b) .52 : 1
(c) .4 : 1
(d) .37 : 1

Question. Credit revenue from operations Rs.6,00,000; Cash revenue from operations Rs.1,50,000; Debtors Rs.1,00,000; B/R Rs.50,000. Average Collection Period will be :
(a) 2 Months
(b) 2.4 Months
(c) 3 Months
(d) 1.6 Months

Question. Long term solvency is indicated by :
(a) Current Ratio
(b) Quick Ratio
(c) Net Profit Ratio
(d) Debt/Equity Ratio

Question. Sincere Ltd. has a Proprietary Ratio of 25%. To maintain this ratio at 30%, management may ~
(a) increase Equity.
(b) Reduce Debt.
(c) Either Increase Equity or Reduce Debt.
(d) lncrease Current Assets.

Question. Average Inventory is used to calculate the_______
(a) Inventory Turnover Ratio
(b) Interest Coverage Ratio
(c) Debt Equity Ratio
(d) Current Ratio

Question. The quick ratio of a company is 2 : 1. State giving reasons, (for any four) which of the following would improve, reduce or not change the ratio
(a) Purchase of goods on credit (iii) Sale of furniture at cost
(b) Sale of goods at a profit
(c) Purchase of machinery for cash
(d) None of the options

Question. Current liabilities of a company were Rs.2,00,000 and its current ratio was 2.5 : 1. After this the company paid Rs. 1,00,000 to a trade payable. The current ratio after the payment will be :
(a) 2 : 1
(b) 4 : 1
(c) 5 : 1
(d) None of the above

Question. Name the difference between Capital Employed and Non-current Liabilities:
(a) Shareholders’ Funds
(b) Capital Employed
(c) Total Debts
(d) Total Assets

Question. A Company’s Current Ratio is 2.8 : 1; Current Liabilities are Rs.2,00,000; Inventory is Rs. 1,50,000 and Prepaid Expenses are Rs. 10,000. Its Liquid Ratio will be :
(a) 3.6 : 1
(b) 2.1 : 1
(c) 2 : 1
(d) 2.05 : 1

Question. Quick Ratio is also known as :
(a) Liquid Ratio
(b) Current Ratio
(c) Working Capital Ratio
(d) None of the Above

Question. The Two Basic Measures of Liquidity Ratio are-
(a) Stock and Debtors Turnover Ratio
(b) Current Ratio and operating ratio
(c) Current ratio and Liquid ratio
(d) Gross and Net profit Ratio

Current Ratio

CA/CL

Question: Current Assets Rs. 2,00,000; Inventories Rs. 1,00,000; Working Capital Rs. 1,20,000; Calculate Current Ratio.
Solution : Current liabilities = Current Assets – Working Capital
= Rs. 2,00,000 – Rs. 1,20,000 = Rs. 80,000
Current Ratio = Current Assets/ Current liabilities
= Rs. 2,00,000/Rs. 80,000
= 2.5:1

QUICK RATIO/LIQUID RATIO/ACID TEST RATIO

Liquid assets/CL

Question 1: Liquid Assets Rs. 6,80,000, Inventories Rs. 1,90,000, Prepaid Expenses Rs. 10,000, Working Capital Rs. 2,00,000. Calculate the Current Ratio and Quick Ratio.

Question 2. The Quick Ratio of a company is 2:1. State giving reason, which of the following would improve, reduce or not change the ratio:

(i) Purchase of Stock-in-trade(costing Rs.10,000) for Rs. 11,000.

(ii) Sale of an office furniture (Book value Rs. 10,000) for Rs. 9,000.

(iii) Payment of Dividend.

(iv) Issue of Equity shares.