Free Printable Accounting Ratios Class XII

1.

Two basic measures of liquidity are :

a)

(A) Inventory turnover and Current ratio

b)

(B) Current ratio and Quick ratio

c)

(C) Gross Profit ratio and Operating ratio

d)

(D) Current ratio and Average Collection period

2.

Which of the following is not operating expenses?

a)

(A) Office Expenses

b)

(B) Selling Expenses

c)

(C) Bad Debts

d)

(D) Loss by Fire

3.

Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses? ₹48,000. Calculate operating ratio

a)

(A) 80%

b)

(B) 85%

c)

(C) 96.33%

d)

(D) 93%

4.

4. 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. Calculate operating ratio

a)

(A) 60%

b)

(B) 75%

c)

(C) 70%

d)

(D) 65%

5.

Total Revenue from Operations ₹15,00,000; Cost of Revenue from Operations ₹9,00,000 and Operating Expenses ₹2,25,000. Calculate operating ratio :

a)

(A) 75%

b)

(B) 25%

c)

(C) 60%

d)

(D) 15%

6.

Cost of Revenue from Operations =

a)

(A) Revenue from Operations – Net Profit

b)

(B) Revenue from Operations – Gross Profit

c)

(C) Revenue from Operations – Closing Inventory

d)

(D) Purchases – Closing Inventory

7.

Revenue from operations is ₹1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?

a)

(A) ₹45,000

b)

(B) ₹36,000

c)

(C) ₹40,000

d)

(D) ₹60,000

8.

Operating ratio is :

a)

(A) Cost of revenue from operations + Selling Expenses/Net revenue from operations

b)

(B) Cost of production + Operating Expenses/Net revenue from operations

c)

(C) Cost of revenue from operations + Operating Expenses/Net Revenue from Operations

d)

(D) Cost of Production/Net revenue from operations.

9.

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?

a)

(A) ₹1,50,000

b)

(B) ₹1,00,000

c)

(C) ₹1,20,000

d)

(D) ₹5,00,000

10.

What will be the amount of Gross Profit. if revenue from operations are ₹6,00,000 and Gross . Profit Ratio is 20% of cost?

a)

(A) ₹1,50,000

b)

(B) ₹1,00,000

c)

(C) ₹1,20,000

d)

(D) ₹5,00,000

11.

On the basis of following data, a Company’s Gross Profit Ratio will be :Net Profit ₹40,000; Office Expenses ₹20,000; Selling Expenses ₹36,000; Total revenue from operations ₹6,00,000.

a)

(A) 16%

b)

(B) 20%

c)

(C) 6.67%

d)

(D) 12.5%

12.

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

a)

(A) 11%.

b)

(B) 23.2%

c)

(C) 18%

d)

(D) 20%

13.

Cash Revenue from Operations ₹4,00,000 Credit Revenue, from Operations ₹21,00,000; Revenue from Operations Return ₹1,00,000; Cost of revenue from operations ₹19,20,000. G.P. ratio will be

a)

(A) 4%

b)

(B) 23.2%

c)

(C) 80%

d)

(D) 20%

14.

Opening Inventory ₹1,00,000; Closing Inventory ₹1,20,000; Purchases ₹20,00,000; Wages ₹2,40,000; Carriage Inwards ₹1,50,000; Selling Exp. ₹60,000; Revenue from Operations ₹30,00,000. Gross Profit ratio will be :

a)

(A) 29%

b)

(B) 26%

c)

(C) 19%

d)

21%

15.

Current assets include only those assets which are expected to be realised within ……………………..

a)

(A) 3 months

b)

(B) 6 months

c)

(C) 1 year

d)

(D) 2 years

16.

Liquid Assets include:

a)

(A) Debtors

b)

(B) B/R

c)

(C) Bank Balance

d)

(D) All of the above

17.

Patents and Copyrights fall under the category of:

a)

(A) Current Assets

b)

(B) Liquid Assets

c)

(C) Intangible Assets

d)

(D) None of Above

18.

Cash Balance ₹15,000; Trade Receivables ₹35,000; Inventory ₹40,000; Trade Payables ₹24,000 and Bank Overdraft is ₹6,000. Current Ratio will be :

a)

(A) 3.75 : 1

b)

(B) 3 : 1

c)

(C) 1 : 3

d)

(D) 1 : 3.75

19.

Closing Inventory Rs 60,000 ; Total Revenue from Operations Rs. 5,00,000 ( including Cash Revenue from Operations Rs. 1,00,000 ) ; Total Purchases Rs. 3,00,000 ( including Credit Purchases of Rs. 60,000) . Goods are sold at a profit of 25 % on cost. Calculate Opening Inventory.

a)

2,00,000

b)

1,50,000

c)

1,60,000

d)

2,50,000

20.

The Net Profit after Interest and Tax of a Company was Rs. 1,20,000; rate of Tax is 40% ; The Company has 10 % Debentures of rs. 1,00,000. calculate Interest Coverage Ratio.

a)

20 Times

b)

21 Times

c)

22 Times

d)

25 Times

21.

Which of the following transactions will improve the Current Ratio :

a)

(A) Cash Collected from Trade Receivables

b)

(B) Purchase of goods for cash

c)

(C) Payment to Trade Payable

d)

(D) Credit purchase of Goods

22.

Which of the following transactions will improve the quick ratio?

a)

(A) Sale of goods for cash

b)

(B) Sale of goods on credit

c)

(C) Issue of new shares for cash

d)

(D) All of the Above

23.

A company’s Current Ratio is 2 : 1. After cash payment to some of its creditors, Current Ratio will:

a)

(A) Decrease

b)

(B) Increase

c)

(C) As before

d)

(D) None of these

24.

A Company’s Current Assets are ₹8,00,000 and its current liabilities are ₹4,00,000. Subsequently, it purchased goods for ₹1,00,000 on credit. Current ratio will be

a)

(A) 2 : 1

b)

(B) 2.25 : 1

c)

(C) 1.8 : 1

d)

(D) 1.6 : 1

25.

A Company’s liquid assets are ₹10,00,000 and its current liabilities are ₹8,00,000. Subsequently, it purchased goods for ₹1,00,000 on credit. Quick ratio will be

a)

(A) 1.11 : 1

b)

(B) 1.22 : 1

c)

(C) 1.38 : 1

d)

(D) 1.25 : 1

26.

A Company’s liquid assets are ₹5,00,000 and its current liabilities are ₹3,00,000. Thereafter, it paid 1,00,000 to its trade payable. Quick ratio will be:

a)

(A) 1.33 : 1

b)

(B) 2.5 : 1

c)

(C) 1.67 : 1

d)

(D) 2 : 1

27.

The is a measure of liquidity which excludes generally the least liquid asset.

a)

(A) Current ratio, Accounts receivable

b)

(B) Liquid ratio, Accounts receivable

c)

(C) Current ratio, inventory

d)

(D) Liquid ratio, inventory

28.

Assuming that the current ratio is 2 : 1, purchase of goods on credit would:

a)

(A) Increase Current ratio

b)

(B) Decrease Current ratio

c)

(C) have no effect on Current ratio

d)

(D) decrease gross profit ratio

29.

Fixed Assets ₹5,00,000; Current Assets ₹3,00,000; Equity Share Capital ₹4,00,000; Reserve ₹2,00,000; Long-term Debts ₹40,000. Proprietary Ratio will be :

a)

(A) 75%

b)

(B) 80%

c)

(C) 125%

d)

(D) 133%

30.

If Debt equity ratio exceeds …….., it indicates risky financial position.

a)

(A) 1 : 1

b)

(B) 2 : 1

c)

(C) 1 : 2

d)

(D) 3 : 1

31.

Equity Share Capital ₹20,00,000; Reserve 5,00,000; Debentures ₹10,00,000; Current Liabilities ₹8,00,000. Debt-equity ratio will be :

a)

(A) 0.4 ; 1

b)

(B)0.32 : 1

c)

(C) 0.72 : 1

d)

(D) 0.5 : 1

32.

Debt equity ratio of a company is 1 : 2. Which of the following transactions will increase it:

a)

(A) Issue of new shares for cash

b)

(B) Redemption of Debentures

c)

(C) Issue of Debentures for cash

d)

(D) Goods purchased on credit

33.

On the basis of following data, the proprietary ratio of a Company will be :Equity Share Capital ₹6,00,000; Debentures ₹2,40,000; Statement of Profit & Loss Debit Balance ₹40,000.

a)

(A) 74%

b)

(B) 65%

c)

(C) 82%

d)

(D) 70%

34.

On the basis of following data, a Company’s Total Assets-Debt Ratio will be: Working Capital ₹2,70,000; Current Liabilities ₹30,000; Fixed Assets ₹4,00,000; Debentures ₹2,00,000; Long Term Bank Loan ₹80,000.

a)

(A) 37%

b)

(B) 40%

c)

(C) 45%

d)

(D) 70%

35.

Opening Inventory ₹1,00,000; Closing Inventory ₹1,50,000; Purchases ₹6,00,000; Carriage ₹25,000; Wages ₹2,00,000. Inventory Turnover Ratio will be :

a)

(A) 6.6 Times

b)

(B) 7.4 Times

c)

(C) 7 Times

d)

(D) 6.2 Times

36.

If the inventory turnover ratio is divided into 365, it becomes a measure of

a)

(A) Sales efficiency

b)

(B) Average Age of Inventory

c)

(C) Sales Turnover

d)

(D) Average Collection Period

37.

Average Inventory ₹60,000; Inventory Turnover Ratio 8; Gross Profit 20% on revenue from operations; what will be Gross Profit?

a)

(A) ₹1,20,000

b)

(B) ₹96,000

c)

(C) ₹80,000

d)

(D) ₹15,000

38.

Opening Inventory ₹75,000; Closing Inventory ₹1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit?

a)

(A) ₹1,35,000

b)

(B) ₹1,08,000

c)

(C) ₹90,000

d)

(D) ₹18,000

39.

Total revenue from operations ₹9,00,000; Cash revenue from operations ₹3,00,000; Debtors ₹1,00,000; B/R ₹20,000. Trade Receivables Turnover Ratio will be :

a)

(A) 5 Times

b)

(B) 6 Times

c)

(C) 7.5 Times

d)

(D) 9 Times

40.

Y ltd.'s profit after interest and tax was Rs. 1,00,000 . Its Current Assets were Rs.4,25,000 ; Current Liabilities Rs. 2,00,000 ; Fixed assets Rs. 6,00,000 and 10 % Long Term Debts were Rs. 4,00,000. The rate of Tax was 20 %. Calculate Return on Capital Employed.

a)

20%

b)

25%

c)

30%

d)

35%

41.

A firm makes cash revenue from operations of ₹6,00,000 during the year which is 20 % of total revenue from operations . If the trade receivables turnover ratio is 8 times, calculate closing debtors, if the closing debtors are more by ₹6,000 than the opening debtors :

a)

(A) ₹33,000

b)

(B) ₹36,000

c)

(C) ₹24,000

d)

(D) ₹27,000

42.

Credit revenue from operations ₹3,00,000. Trade Receivables Turnover Ratio 5; Calculate Closing Debtors, if closing debtors are two times more in comparison to Opening Debtors.

a)

(A) ₹40,000

b)

(B) ₹90,000

c)

(C) ₹ 80,000

d)

(D) ₹1,20,000

43.

Credit revenue from operations ₹5,60,000; Debtors ₹70,000; B/R ₹10,000. Average Collection Period will be :

a)

(A) 52 Days

b)

(B) 53 Days

c)

(C) 45 Days

d)

(D) 46 Days

44.

On the basis of following data, a Company’s closing debtors will be:Credit revenue from operations ₹9,00,000; Average Collection period 2 months; Opening debtors are ₹15,000 less as compared to closing debtors.

a)

(A) ₹1,42,500

b)

(B) ₹1,57,500

c)

(C) ₹1,80,000

d)

(D) ₹75,000

45.

Total credit revenue from operations of a firm is ₹5,40,000. Average collection period is 3 months. Opening debtors are ₹1,10,000. Its closing debtors will be :

a)

(A) ₹1,35,000

b)

(B) ₹1,60,000

c)

(C) ₹2,20,000

d)

(D) ₹1,80,000

46.

Credit Purchases ₹6,00,000; Trade Payables Turnover Ratio 5; Calculate closing creditors, if closing creditors are ₹ 10,000 less than opening creditors.

a)

(A) ₹1,15,000

b)

(B) ₹1,25,000

c)

(C) ₹1,30,000

d)

(D) ₹1,10,000

47.

On the basis of following data, the Waiting Capital Turnover Ratio of a company will be :Liquid Assets ₹3,70,000; Inventory ₹80,000; Current Liabilities ₹1,50,000; Cost of revenue from operations ₹7,50,000.

a)

(A) 2.5 Times

b)

(B) 3 Trimes

c)

(C) 5 Times

d)

(D) 3.8 Times

48.

Opening Inventory ₹1,00,000; Closing Inventory ₹1,20,000; Purchases ₹20,00,000; Wages ₹2,40,000; Carriage Inwards ₹1,50,000; Selling Exp. ₹60,000; Revenue from Operations ₹30,00,000. Gross Profit ratio will be :

a)

(A) 29%

b)

(B) 26%

c)

(C) 19%

d)

(D) 21%

49.

Net profit after interest but before tax is Rs. 1,40,000. 15 % Long term Debt ; Rs. 4,00,000 ; Shareholders funds is Rs. 2,40,000; Tax rate : 50 % . calculate Return on Capital Employed.

a)

4,00,0000

b)

6,00,000

c)

6,40,000

d)

8,00,000

50.

A company earns Gross Profit of 25 % on cost .For he year ended on 31st March 2020 its Gross Profit was Rs. 5,00,000; Equity Share capital of the Company was Rs. 10,00,000 ; Reserves and Surplus Rs. 2,00,000 ; Long term loan Rs. 3,00,000 and Non current Assets were Rs. 10,00,000. Compute the Working Capital Turnover Ratio of the Company.

a)

2 Times

b)

3 Times

c)

4 Times

d)

5 Times

Accounting Ratios Class XII

Total questions: 50

Worksheet time: 25mins

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