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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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