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Accounting Ratios Class 12 Accountancy MCQs Pdf
Multiple Choice Questions
Select the best alternate and check your answer with the answers given at the end of the book.
(A) Liquidity Ratios
1. Two basic measures of liquidity are :
(A) Inventory turnover and Current ratio
(B) Current ratio and Quick ratio
(C) Gross Profit ratio and Operating ratio
(D) Current ratio and Average Collection period
Answer
Answer: B
2. Current Ratio is :
(A) Solvency Ratio
(B) Liquidity Ratio
(C) Activity Ratio
(D) Profitability Ratio
Answer
Answer: B
3. Current Ratio is :
(A) Liquid Assets/Current Assets
(B) Fixed Assets/Current Assets
(C) Current Assets/Current Liabilities
(D) Liquid Assets/Current Liabilities
Answer
Answer: C
4. Liquid Assets do not include :
(A) Bills Receivable
(B) Debtors
(C) Inventory
(D) Bank Balance
Answer
Answer: C
5. Ideal Current Ratio is :
(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1
Answer
Answer: D
6. 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
Answer: C
7. Current assets include only those assets which are expected to be realised within ……………………..
(A) 3 months
(B) 6 months
(C) 1 year
(D) 2 years
Answer
Answer: C
8. The ………………… of a business firm is measured by its ability to satisfy its short term obligations as they become due.
(A) Activity
(B) Liquidity
(C) Debt
(D) Profitability
Answer
Answer: B
9. Ideal Quick Ratio is :
(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1
Answer
Answer: A
10. Quick Assets do not include
(A) Cash in hand
(B) Prepaid Expenses
(C) Marketable Securities
(D) Trade Receivables
Answer
Answer: B
11. Current Assets do not include :
(A) Prepaid Expenses
(B) Inventory
(C) Goodwill
(D) Bills Receivable
Answer
Answer: C
12. Quick Ratio is also known as :
(A) Liquid Ratio
(B) Current Ratio
(C) Working Capital Ratio
(D) None of the Above
Answer
Answer: A
13. Liquid Assets include :
(A) Debtors
(B) Bills Receivable
(C) Bank Balance
(D) All of the Above
Answer
Answer: D
14. Liquid Ratio is equal to liquid assets divided by :
(A) Non-Current Liabilities
(B) Current Liabilities
(C) Total Liabilities
(D) Contingent Liabilities
Answer
Answer: B
15. Patents and Copyrights fall under the category of:
(A) Current Assets
(B) Liquid Assets
(C) Intangible Assets
(D) None of Above
Answer
Answer: C
16. 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) 3.75 : 1
(B) 3 : 1
(C) 1 : 3
(D) 1 : 3.75
Answer
Answer: B
17. Trade Receivables ?40,000; Trade Payables ₹60,000; Prepaid Expenses ₹10,000; Inventory ₹1,00,000 and Goodwill is ₹15,000. Current Ratio will be :
(A) 1 : 2
(B) 2 : 1
(C) 2.33 : 1
(D) 2.5 : 1
Answer
Answer: D
18. Cash Balance ₹5,000; Trade Payables ₹40,000; Inventory ₹50,000; Trade Receivables ₹65,000 and Prepaid Expenses are ₹10,000. Liquid Ratio will be
(A) 1.75 : 1
(B) 2 : 1
(C) 3.25 : 1
(D) 3 : 1
Answer
Answer: A
19. Current Assets ₹4,00,000; Current Liabilities ₹2,00,000 and Inventory is ₹50,000. Liquid Ratio will be :
(A) 2 : 1
(B) 2.25 : 1
(C) 4 : 7
(D) 1.75 : 1
Answer
Answer: D
20. Which of the following transactions will improve the Current Ratio :
(A) Cash Collected from Trade Receivables
(B) Purchase of goods for cash
(C) Payment to Trade Payables
(D) Credit purchase of Goods
Answer
Answer: C
21. Which of the following transactions will improve the quick ratio?
(A) Sale of goods for cash
(B) Sale of goods on credit
(C) Issue of new shares for cash
(D) All of the Above
Answer
Answer: D
22. A company’s Current Ratio is 2 : 1. After cash payment to some of its creditors, Current Ratio will:
(A) Decrease
(B) Increase
(C) As before
(D) None of these
Answer
Answer: B
23. 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) 2 : 1
(B) 2.25 : 1
(C) 1.8 : 1
(D) 1.6 : 1
Answer
Answer: C
24, A company’s Current assets are ₹3,00,000 and its current liabilities are ₹2,00,000. Subsequently, it paid ₹50,000 to its trade payables. Current ratio will be
(A) 2 : 1
(B) 1.67 : 1
(C) 1.25 : 1
(D) 1.5 : 1
Answer
Answer: B
25. Current Assets of a Company were ? 1,00,000 and its current ratio was 2 : 1. After this the company paid ?25,000 to a Trade Payable. The Current Ratio after the payment will be :
(A) 5 : 1
(B) 2 : 1
(C) 3 : 1
(D) 4 : 1
Answer
Answer: C
26. Current liabilities of a company were ₹2,00,000 and its current ratio was 2.5 : 1. After this the company paid ₹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
Answer
Answer: B
27. 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) 1.11 : 1
(B) 1.22 : 1
(C) 1.38 : 1
(D) 1.25 : 1
Answer
Answer: A
28. 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 payables. Quick ratio will be:
(A) 1.33 : 1
(B) 2.5 : 1
(C) 1.67 : 1
(D) 2 : 1
Answer
Answer: D
29. The is a measure of liquidity which excludes generally the least liquid asset.
(A) Current ratio, Accounts receivable
(B) Liquid ratio, Accounts receivable
(C) Current ratio, inventory
(D) Liquid ratio, inventory
Answer
Answer: D
30. Assuming that the current ratio is 2 : 1, purchase of goods on credit would:
(A) Increase Current ratio
(B) Decrease Current ratio
(C) have no effect on Current ratio
(D) decrease gross profit ratio
Answer
Answer: B
31. Assuming that the current ratio is 2 : 1, Cash paid against Bills Payable would:
(A) increase current ratio
(B) Decrease Current ratio
(C) have no effect on Current ratio
(D) decrease gross profit ratio
Answer
Answer: A
32. 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
Answer
Answer: C
33. Liquid Assets :
(A) Current Assets – Prepaid Lxp.
(B) Current Assets – Inventory + Prepaid Exp.
(C) Current Assets – Inventory – Prepaid Exp.
(D) Current Assets + Inventory – Prepaid Exp.
Answer
Answer: C
34. Current Assets ₹85,000; Inventory ₹22,000; Prepaid Expenses ₹3,000. Then liquid assets will be :
(A) ₹63,000
(B) ₹60,000
(C) ₹82,000
(D) ₹1,10,000
Answer
Answer: B
35. A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹2,00,000 and Inventory is ₹1,80,000. Current Ratio will be :
(A) 0.9 : 1
(B) 1.9 : 1
(C) 1.4 : 1
(D) 2.4 : 1
Answer
Answer: D
36. A Company’s Quick Ratio is 1.8 : 1; Liquid Assets are ₹5,40,000 and Inventory is ₹1,50,000. Its Current Ratio will be :
(A) 2 : 1
(B) 2.3 : 1
(C) 1.8 : 1
(D) 1.3 : 1
Answer
Answer: B
37. A Company’s Current Ratio is 2.8 : 1; Current Liabilities are ₹2,00,000; Inventory is ₹1,50,000 and Prepaid Expenses are ₹10,000. Its Liquid Ratio will be :
(A) 3.6 : 1
(B) 2.1 : 1
(C) 2 : 1
(D) 2.05 : 1
Answer
Answer: C
38. A Company’s Current Ratio is 3 : 1; Current Liabilities are ₹2,50,000; Inventory is ₹60,000 and Prepaid Expenses are ₹5,000. Its Liquid Assets will be :
(A) ₹6,90,000
(B) ₹6,95,000
(C) ₹6,85,000
(D) ₹8,15,000
Answer
Answer: C
39. On the basis of following data, the liquid ratio of a company will be : Current Ratio 5 : 3; Current Liabilities ₹75,000 and Inventory ₹25,000
(A) 1 : 1
(B) 2:1.8
(C) 3 : 2
(D) 4 : 3
Answer
Answer: D
40. Current ratio of a firm is 9 : 4. Its current liabilities are ₹1,20,000. Inventory is ₹30,000. Its liquid ratio will be :
(A) 1 : 1
(B) 1.5 : 1
(C) 2 : 1
(D) 1.6 : 1
Answer
Answer: C
41. A firm’s current ratio is 3.5 : 2. Its current liabilities are ?80,000. Its working capital will be :
(A) ₹1,20,000
(B) ₹1,60,000
(C) ₹60,000
(D) ₹2,80,000
Answer
Answer: C
42. A Company’s Current Ratio is 3 : 1 and Liquid Ratio is 1.2 : 1. If its Current Liabilities are ₹2,00,000, what will be the value of Inventory?
(A) ₹2,40,000
(B) ₹3,60,000
(C) ₹4,00,000
(D) ₹40,000
Answer
Answer: B
43. A Company ’ s Current Ratio is 2.5 : 1 and Liquid Ratio is 1.6 : 1. If its Current Assets are ₹7,50,000, what will be the value of Inventory?
(A) ₹4,50,000
(B) ₹4,80,000
(C) ₹2,70,000
(D) ₹1,80,000
Answer
Answer: C
44. Current Ratio of a Company is 2.5 : 1. If its working capital is ₹60,000, its current liabilities will be :
(A) ₹40,000
(B) ₹60,000
(C) ₹1,00,000
(D) ₹24,000
Answer
Answer: A
45. A Company’s Current Assets are ₹6,00,000 and working capital is ₹2,00,000. Its Current Ratio will be :
(A) 3 : 1
(B) 1.5 : 1
(C) 2 : 1
(D) 4 : 1
Answer
Answer: B
46. A Company’s Current Ratio is 2.4 : 1 and Working Capital is ₹5,60,000. If its Liquid Ratio is 1.5, what will be the value of Inventory?
(A) ₹6,00,000
(B) ₹2,00,000
(C) ₹3,60,000
(D) ₹6,40,000
Answer
Answer: C
47. A Company’s Current Ratio is 2.5 : 1 and its Working Capital is ₹60,000. If its Inventory is ₹52,000, what will be the liquid Ratio?
(A) 2.3 : 1
(B) 2.8 : 1
(C) 1.3 : 1
(D) 1.2 : 1
Answer
Answer: D
48. If a Company’s Current Liabilities are ₹80,000; Working Capital is ₹2,40,000 and Inventory is ₹40,000, its quick ratio will be:
(A) 3.5 : 1
(B) 4 : 1
(C) 4.5 : 1
(D) 3 : 1
Answer
Answer: A
49. A Company’s Liquid Assets are ₹2,00,000, Inventory is ₹1,00,000, Prepaid Expenses are ₹20,000 and Working Capital is ₹2,40,000. Its Current Ratio will be:
(A) 1.33 : 1
(B) 4 : 1
(C) 2.5 : 1
(D) 3 : 1
Answer
Answer: B
(B) Solvency Ratios
50. Long term solvency is indicated by :
(A) Current Ratio
(B) Quick Ratio
(C) Net Profit Ratio
(D) Debt/Equity Ratio
Answer
Answer: D
51. Debt Equity Ratio is :
(A) Liquidity Ratio
(B) Solvency Ratios
(C) Activity Ratio
(D) Operating Ratio
Answer
Answer: B
52. Debt Equity Ratio is :
(A) Long Term Debts/Shareholder’s Funds
(B) Short Term Debts/Equity Capital
(C) Total Assets/Long term Debts
(D) Shareholder’s Funds/Total Assets
Answer
Answer: A
53. Proprietary Ratio is :
(A) Long term Debts/Shareholder’s Funds
(B) Total Assets/Shareholder’s Funds
(C) Shareholder’s Funds/Total Assets
(D) Shareholder’s Funds/Fixed Assets
Answer
Answer: C
54. 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) 75%
(B) 80%
(C) 125%
(D) 133%
Answer
Answer: A
55. The ………….. ratios provide the information critical to the long run operation of the firm.
(A) Liquidity
(B) Activity
(C) Solvency
(D) Profitability
Answer
Answer: C
56. If Debt equity ratio exceeds , it indicates risky financial position.
(A) 1 : 1
(B) 2 : 1
(C) 1 : 2
(D) 3 : 1
Answer
Answer: B
57. In debt equity ratio, debt refers to :
(A) Short Term Debts
(B) Long Term Debts
(C) Total Debts
(D) Debentures and Current Liabilities
Answer
Answer: B
58. Proprietary Ratio indicates the relationship between Proprietor’s Funds and
(A) Long-Term Debts
(B) Short Term & Long Term Debts
(C) Total Assets
(D) Debentures
Answer
Answer: C
59. The formula for calculating the Debt Equity Ratio is :
Answer
Answer: D
60. 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) .4 ; 1
(B) .32 : 1
(C) .72 : 1
(D) .5 : 1
Answer
Answer: A
61. Debt equity ratio of a company is 1 : 2. Which of the following transactions will increase it:
(A) Issue of new shares for cash
(B) Redemption of Debentures
(C) Issue of Debentures for cash
(D) Goods purchased on credit
Answer
Answer: C
62. Satisfactory ratio between Long-term Debts and Shareholder’s Funds is :
(A) 1 : 1
(B) 3 : 1
(C) 1 : 2
(D) 2 : 1
Answer
Answer: D
63. On the basis of following data, the Debt-Equity Ratio of a Company will be:
Equity Share Capital ₹5,00,000; General Reserve ₹3,20,000; Preliminary Expenses ₹20,000; Debentures ₹3,20,000; Current Liabilities ₹80,000.
(A) 1 : 2
(B) 52 : 1
(C) 4 : 1
(D) 37 : 1
Answer
Answer: C
64. On the basis of following information received from a firm, its Debt-Equity Ratio will be :
Equity Share Capital ₹5,80,000; Reserve Fund ₹4,30,000; Preliminary Expenses ₹40,000; Long term Debts ₹1,28,900; Debentures ₹2,30,000.
(A) 42 : 1
(B) 53 : 1
(C) 63 : 1
(D) 37 : 1
Answer
Answer: D
65. 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) 74%
(B) 65%
(C) 82%
(D) 70%
Answer
Answer: D
66. On the basis of following information received from a firm, its Proprietary Ratio will be :
Fixed Assets ?3,30,000; Current Assets ₹1,90,000; Preliminary Expenses ₹30,000; Equity Share Capital ₹2,44,000; Preference Share Capital ₹1,70,000; Reserve Fund ₹58,000.
(A) 70%
(B) 80%
(C) 85%
(D) 90%
Answer
Answer: C
67. 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) 37%
(B) 40%
(C) 45%
(D) 70%
Hint: Working Capital + Current Liabilities = Current Assets
Answer
Answer: B
68. On the basis of following information received from a firm, its Total Assets-Debt Ratio will be :
Working Capital ₹3,20,000; Current Liabilities ₹1,40,000; Fixed Assets ₹2,60,000; Debentures ₹2,10,000; Long Term Bank Debt ₹78,000.
(A) 40%
(B) 60%
(C) 30%
(D) 70%
Answer
Answer: A
(C) Activity Ratios
69. Inventory Turnover Ratio is:
(A) Average Inventory/Revenue from Operations
(B) Average Inventory/Cost of Revenue from Operations
(C) Cost of Revenue from Operations/Average Inventory
(D) G.P./Average Inventory
Answer
Answer: C
70. 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) 6.6 Times
(B) 7.4 Times
(C) 7 Times
(D) 6.2 Times
Answer
Answer: D
71. Revenue from Operations ₹8,00,000; Gross Profit Ratio 25%; Opening Inventory ₹1,00,000; Closing Inventory ₹60,000. Inventory Turnover Ratio will be :
(A) 10 Times
(B) 7.5 Times
(C) 8 Times
(D) 12.5 Times
Answer
Answer: B
72. On the basis of following data, the cost of revenue from operations by a company will be :
Opening Inventory ₹70,000; Closing Inventory ?₹80,000; Inventory Turnover Ratio 6 Times.
(A) ₹1,50,000
(B) ₹90,000
(C) ₹4,50,000
(D) ₹4,80,000
Answer
Answer: C
73. Opening Inventory of a firm is ₹80,000. Cost of revenue from operations 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
Answer: A
74. Cost of revenue from operations ₹6,00,000; Inventory Turnover Ratio 5; Find out the value of opening inventory, if opening inventory is ₹8,000 less than ” the closing inventory.
(A) ₹1,12,000
(B) ₹1,16,000
(C) ₹1,28,000
(D) ₹1,24,000
Answer
Answer: B
75. Revenue from Operations ₹2,00,000; Inventory Turnover Ratio 5; Gross Profit 25%. Find out the value of Closing In ventory, if Closing Inventory is ₹8,000 more than the Opening Inventoiy.
(A) ₹38,000
(B) ₹22,000
(C) ₹34,000
(D) ₹26,000
Answer
Answer: C
76. If the inventory turnover ratio is divided into 365, it becomes a measure of
(A) Sales efficiency
(B) Average Age of Inventory
(C) Sales Turnover
(D) Average Collection Period
Answer
Answer: B
77. If average inventory is ₹50,000 and closing inventory is ₹2,000 less than the opening inventory, opening and closing inventory will be :
(A) ₹52,000 and ₹50,000
(B) ₹50,000 and ₹48,000
(C) ₹48,000 and ₹46,000
(D) ₹51,000 and ₹49,000
Answer
Answer: D
78. Opening Inventory ₹50,000; Closing Inventory ₹40,000 and cost of revenue from operations ₹7,20,000. What will be Inventory Turnover Ratio?
(A) 18 Times
(B) 16 Times
(C) 14.4 Times
(D) 8 Times
Answer
Answer: B
79. Average Inventory ₹60,000; Inventory Turnover Ratio 8; Gross Profit 20% on revenue from operations; what will be Gross Profit?
(A) ₹1,20,000
(B) ₹96,000
(C) ₹80,000
(D) ₹15,000
Answer
Answer: A
80. Opening Inventory ₹75,000; Closing Inventory ₹1,05,000; Inventory Turnover Ratio 6; Gross Profit 20% on cost; what will be Gross Profit?
(A) ₹1,35,000
(B) ₹1,08,000
(C) ₹90,000
(D) ₹18,000
Answer
Answer: B
81. Opening Inventory ₹40,000; Purchase ₹4,00,000; Purchase Return ₹12,000, what will be Inventory turnover ratio if Closing Inventory is less than Opening Inventory by ₹8,000?
(A) 9 Times
(B) 10.78 Times
(C) 11 Times
(D) 8.82 Times
Answer
Answer: C
82. The formula for calculating the Trade Receivables Turnover Ratio is :
Answer
Answer: C
83. Total revenue from operations ₹9,00,000; Cash revenue from operations ₹3,00,000; Debtors ₹1,00,000; B/R ₹20,000. T rade Receivables Turnover Ratio will be :
(A) 5 Times
(B) 6 Times
(C) 7.5 Times
(D) 9 Times
Answer
Answer: A
84. Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000; Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts ₹60,000. Trade Receivables Turnover Ratio will be :
(A) 7.5 times
(B) 9 times
(C) 6 times
(D) 5 times
Answer
Answer: D
85. Credit revenue from operations ₹24,00,000; Trade Receivables Turnover Ratio 6 times; Opening Debtors ₹3,20,000. Closing Debtors will be :
(A) ₹4,00,000
(B) ₹4,80,000
(C) ₹80,000
(D) ₹7,20,000
Answer
Answer: B
86. A firm makes credit revenue from operations of ₹2,40,000 during the year. 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) ₹33,000
(B) ₹36,000
(C) ₹24,000
(D) ₹27,000
Answer
Answer: A
87. Credit revenue from operations ₹3,00,000. Trade Receivables Turnover Ratio 5; Calculate Closing Debtors, if closing debtors are two times in comparison to Opening Debtors.
(A) ₹40,000
(B) ₹60,000
(C) ₹ 80,000
(D) ₹1,20,000
Answer
Answer: C
88. Credit revenue from operations ₹5,60,000; Debtors ₹70,000; B/R ₹10,000. Average Collection Period will be :
(A) 52 Days
(B) 53 Days
(C) 45 Days
(D) 46 Days
Answer
Answer: B
89. Credit revenue from operations ₹6,00,000; Cash revenue from operations ? 1,50,000; Debtors ₹1,00,000; B/R ₹50,000. Average Collection Period will be :
(A) 2 Months
(B) 2.4 Months
(C) 3 Months
(D) 1.6 Months
Answer
Answer: C
90. 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) ₹1,42,500
(B) ₹1,57,500
(C) ₹1,80,000
(D) ₹75,000
Answer
Answer: B
91. 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) ₹1,35,000
(B) ₹1,60,000
(C) ₹2,20,000
(D) ₹1,80,000
Answer
Answer: B
92. The formula for calculating Trade Payables Turnover Ratio is :
Answer
Answer: B
93. Credit Purchases ₹12,00,000; Opening Creditors ₹2,00,000; Closing Creditors ₹1,00,000. Trade Payables Turnover Ratio will be :
(A) 6 times
(B) 4 times
(C) 8 times
(D) 12 times
Answer
Answer: C
94. Total Purchases ₹4,50,000; Cash Purchases ₹1,50,000; Creditors ₹50,000; Bills Payable ₹10,000. Trade Payables Turnover Ratio will be :
(A) 7.5 times
(B) 6 times
(C) 9 times
(D) 5 times
Answer
Answer: D
95. Credit Purchases ₹6,00,000; Trade Payables Turnover Ratio 5; Calculate closing creditors, if closing creditors are ? 10,000 less than opening creditors.
(A) ₹1,15,000
(B) ₹1,25,000
(C) ₹1,30,000
(D) ₹1,10,000
Answer
Answer: A
96. Credit Purchases ₹9,60,000; Cash Purchases ₹6,40,000; Creditors ₹2,40,000; Bills Payable ₹80,000. Average Payment Period will be :
(A) 3 months
(B) 4 months
(C) 2.4 months
(D) 6 months
Answer
Answer: B
97. Current Assets ₹5,00,000; Current Liabilities ₹1,00,000; Revenue from Operations ₹28,00,000. Working Capital turnover Ratio will be:
(A) 7 times
(B) 5.6 times
(C) 8 times
(D) 10 times
Answer
Answer: A
98. 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 levcnue from operations ₹7,50,000.
(A) 2.5 Times
(B) 3 Trimes
(C) 5 Times
(D) 3.8 Times
Answer
Answer: A
99. A firm’s cwTent assets are ₹3,60,000; Cur from operations is ₹12,00,000. Its worki
(A) 3 Times
(B) 5 Trimes
(C) 8 Times
(D) 4 Times
Answer
Answer: B
(D) Profitability Ratios
100. 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) 29%
(B) 26%
(C) 19%
(D) 21%
Answer
Answer: D
101. 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) 4%
(B) 23.2%
(C) 80%
(D) 20%
Answer
Answer: D
102. 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) 11%.
(B) 23.2%
(C) 18%
(D) 20%
Answer
Answer: D
103. 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) 16%
(B) 20%
(C) 6.67%
(D) 12.5%
Answer
Answer: A
104. 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) ₹1,50,000
(B) ₹1,00,000
(C) ₹1,20,000
(D) ₹5,00,000
Answer
Answer: B
105. 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) ₹1,50,000
(B) ₹1,00,000
(C) ₹1,20,000
(D) ₹5,00,000
Answer
Answer: C
106. Revenue from operations is ₹1,80,000; Rate of Gross Profit is 25% on cost. What will be the Gross Profit?
(A) ₹45,000
(B) ₹36,000
(C) ₹40,000
(D) ₹60,000
Answer
Answer: B
107. Operating ratio is :
(A) Cost of revenue from operations + Selling Expenses/Net revenue from operations
(B) Cost of production + Operating Expenses/Net revenue from operations
(C) Cost of revenue from operations + Operating Expenses/Net Revenue from Operations
(D) Cost of Production/Net revenue from operations.
Answer
Answer: C
108. Cost of Revenue from Operations =
(A) Revenue from Operations – Net Profit
(B) Revenue from Operations – Gross Profit
(C) Revenue from Operations – Closing Inventory
(D) Purchases – Closing Inventory
Answer
Answer: B
109. 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) 75%
(B) 25%
(C) 60%
(D) 15%
Answer
Answer: A
110. 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) 60%
(B) 75%
(C) 70%
(D) 65%
Answer
Answer: B
111. Revenue from Operations ₹6,00,000; Gross Profit 20%; Office Expenses ₹30,000; Selling Expenses ?₹48,000. Calculate operating ratio (A) 80%
(B) 85%
(C) 96.33%
(D) 93%
Answer
Answer: D
112. Which of the following is not operating expenses?
(A) Office Expenses
(B) Selling Expenses
(C) Bad Debts
(D) Loss by Fire
Answer
Answer: D
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