CBSE Questions for Class 12 Commerce Accountancy Accounting Ratios Quiz 10 - MCQExams.com

If gross profit ratio is $$33.33\%$$ sales, it is ____________$$\%$$ on cost.
  • $$33.33\%$$
  • $$20\%$$
  • $$25\%$$
  • $$50\%$$
Accounting information is dependent on the _________.
  • person who is making it
  • data that has been taken
  • both a & b
  • none of the above
There is a _______ way classification of ratios.
  • One
  • Two
  • Three
  • Four
If gross profit ratio is $$25\%$$ sales, it is __________$$\%$$ on cost.
  • $$33.33\%$$
  • $$20\%$$
  • $$25\%$$
  • $$50\%$$
If gross profit ratio is $$50\%$$ on cost, it is __________$$\%$$ on sales.
  • $$33.33\%$$
  • $$20\%$$
  • $$25\%$$
  • $$50\%$$
Sometimes the accounting information is __________.
  • biased
  • based on estimates
  • based on current replacement cost
  • both a & b
If both variables are from balance sheet, the ratios are classified as ____________ ratios.
  • Income statement
  • Balance sheet
  • Profitability
  • Liquidity
_________ ratio refers to the analysis of profits in relation to sales or funds (or assets) employed in the business and the ratios calculated to meet this objective.
  • Liquidity
  • Profitability
  • Activity
  • Solvency
Liquidity ratios are essentially _______-term in nature.
  • Long
  • Short
  • Medium
  • Both a and b
The __________ classification based on the purpose for which a ratio is computed, is the most commonly used classification.
  • Traditional
  • Modern
  • Functional
  • None of the above
Which of the following ratio is long-term in nature?
  • Liquidity
  • Solvency
  • Activity
  • Profitabiliy
The ability of the business to pay the amount due to stakeholders as and when it is due is known as _________, and the ratios calculated to measure it are known as __________ ratios.
  • Liquidity, Profitability
  • Profitability, Liquidity
  • Activity, Liquidity
  • Liquidity,Liquidity
If  a ratio is computed with one variable from income statement and another variable from balance sheet, it is called as ________ ratio.
  • Income statement
  • Balance sheet
  • Composite
  • Liquidity
___________ ratio refers to the ratios that are calculated for measuring the efficiency of operation of business based on effective utilization of resources. 
  • Liquidity
  • Solvency
  • Activity
  • Profitability
Which of the following is correct?
  • Equity + LTL - CL = FA + CA
  • Equity + LTL = FA + CA + CL
  • Equity + LTL = FA + Working Capital
  • None of these
For calculation of current ratio which of the following is relevant ?
  • Current assets and Fixed liabilities.
  • Current assets and Current liabilities.
  • Fixed asset and Fixed liabilities.
  • Fixed liabilities and Current liabilities.
Calculate gross profit if rate of gross profit is $$20\%$$ on sales and cost of goods is Rs. $$1,20,000$$.
  • Rs. $$24,000$$
  • Rs. $$30,000$$
  • Rs. $$20,000$$
  • None of these
If the profit is $$25\%$$ on sales, then what percentage of profit is on cost.
  • $$33\%$$
  • $$20\%$$
  • $$40\%$$
  • $$50\%$$
A company wishes to earn a $$20\%$$ profit margin on selling price. Which % will achieve the required profit margin on cost?
  • $$33\%$$
  • $$25\%$$
  • $$20\%$$
  • None of these
Ratio Analysis can be used to study liquidity, turnover, profitability, etc. of a firm. What does Debt-Equity Ratio help to study?
  • Solvency
  • Liquidity
  • Profitability
  • Turnover
Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for such behaviour could be  ___________.
  • Increase in Costs of Goods Sold
  • Increase in Indirect Expense
  • Increase in Dividend
  • Decrease in Sales
If profit is $$25\%$$ at cost price, then the profit on sale price will be ?
  • $$20\%$$
  • $$30\%$$
  • $$33$$ $$1/3\%$$
  • $$40\%$$
If stock turnover ratio is $$4$$ times and the collection period is $$30$$ days, the operating cycle would be _________.
  • 121 days
  • 65 days
  • 90 days
  • 100 days
Accounting information is dependent on the __________________.
  • Person who is making it
  • Data that has been taken
  • Both a & b
  • None of the above
Current liabilities of a company were Rs. 1,75,000 and its current ratio was 2:It paid Rs. 30,000 to a creditor. Calculate current ratio after payment :
  • 2: 1
  • 1: 1
  • 1: 5: 1
  • 2.21: 1
Revenue from operations (Net Sales) Rs 4,50,000; Cost of good sold Rs 3,60,000: Operating expenses Rs 22,What will be Operating Profit Ratio?
  • 16%
  • 15%
  • 20%
  • 18%
From the following information calculate interest coverage ratio: Profit after Tax Rs. 2,70,000; Tax Rs. 30,000; Interest on long term funds Rs.50,000
  • 5 times
  • 8 times
  • 7 times
  • 5.5 times
Consider the following statements :
A low inventory turnover may be the result of
Obsolescence of some of the stock
Slow moving inventory
Frequent stock-outs
Fast-moving inventory
Which of the above statement(s) is/are correct?
  • 1 and 2
  • 4 alone
  • 2 alone
  • 2 and 3
From the following data, calculate Inventory Turnover Ratio:
Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; 
Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over opening inventory Rs. 20,000.
  • 6 times
  • 3 times
  • 4 times
  • 5 times
Credit Revenue from Operations, i.e.,
Net credit sales for the year - 1,20,000
Debtors - 12,000
Bills Receivable - 8,000
Calculate Trade Receivable or Debtors' Turnover Ratio.
  • 4 times
  • 3 times
  • 6 times
  • 5 times
0:0:1


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