CBSE  /  Class 12  /  Accountancy  /  Accounting Ratios

  • 1. 
    The following groups of ratios primarily measure risk

  • Liquidity, activity and profitability
  • Liquidity, activity and common stock
  • Liquidity, activity and debt
  • Activity, debt and profitability

  • 2. 
    To know the return on investment, by capital employed we mean:

  • Net Fixed Assets
  • Current Asset-Current Liabilities
  • Gross Block
  • Fixed Assets + Current Assets-Current Liabilities

  • 3. 
    The term fixed assets include :

  • Cash
  • Machinery
  • Debtors
  • Prepaid Expenses

  • 4. 
    Ratio based on figures of profit & loss as well a the Balance sheet are:

  • Profitability Ratios
  • Operation Ratio
  • Liquidity Ratio
  • Composite Ratio

  • 5. 
    Debtors Turnover Ratio :

  • 6. 
    When opening stock is ₹ 50,000 closing stock ₹ 60,000 and cost of goods sold is ₹ 2,20,000, then stock turn over ratio is:

  • 2 times
  • 3 times
  • 4 times
  • 5 times

  • 7. 
    What does Creditors Turnover Ratio take into account:

  • Total credit purchases
  • Total credit sales
  • Total cash sales
  • Total cash purchases

  • 8. 
    Cost of goods sold :

  • Sales – Net profit
  • Sales – Gross profit
  • Purchases – Opening Stock
  • None of the above

  • 9. 
    The ideal liquid ratio is :

  • 2 : 1
  • 1 : 1
  • 5 : 1
  • 4 : 1

  • 10. 
    The ideal current ratio is :

  • 2 : 1
  • 1 : 2
  • 3 : 2
  • 3 : 4
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