Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios with Answer

Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 14 “Accounting Ratios“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.

Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 14 “Accounting Ratios“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.

Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios with Answer

Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios with Answer

Q1. Interest Coverage Ratio is equal to

a) Net Profit before Interest and tax/Interest on long term loan
b) Net Profit before Interest and tax+Interest on long term loan
c) Net Profit before Interest and tax-Interest on long term loan
d) None of the options

a) Net Profit before Interest and tax/Interest on long term loan


Q2. Interest Coverage Ratio is deal only in

a) Return on loan as interest
b) Return on Working Capital
c) Return on loan as interest and Return on Working Capital
d) None of the options

a) Return on loan as interest


Q3. Management are interested in

a) Activity Ratios and Profitability Ratios
b) Activity Ratios
c) Profitability Ratios
d) None of the options

a) Activity Ratios and Profitability Ratios


Q4. Equity Investors are interested in | Accountancy MCQs for Class 12 with Answers Chapter 14

a) All of the options
b) knowing Earnings per Share
c) Return on Investment
d) Return on Equity

a) All of the options


Q5. Long term creditors are those creditors who provide funds for

a) More than one year
b) Only one year
c) More than one year and Only one year
d) None of the options

a) More than one year


Q6. Long term creditors are interested in Accountancy MCQs for Class 12 with Answers Chapter 14

a) All of the options
b) Debt-Equity Ratio
c) Proprietary Ratio
d) Proprietary Ratio

a) All of the options


Q7. Current Ratio is :

(A) Liquid Assets/Current Assets
(B) Fixed Assets/Current Assets
(C) Current Assets/Current Liabilities
(D) Liquid Assets/Current Liabilities

(C) Current Assets/Current Liabilities


Q8. Liquid Assets do not include :

(A) Bills Receivable
(B) Debtors
(C) Inventory
(D) Bank Balance

(C) Inventory


Q9. Ideal Current Ratio is :

(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1

(D) 2 : 1


Q10. Working Capital is the : Accountancy MCQs for Class 12 with Answers Chapter 14

(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

(C) Difference between Current Assets and Current Liabilities


Q11. 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

(D) 2 years


Q12. 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

(B) Liquidity


Q13. Ideal Quick Ratio is : Accountancy MCQs for Class 12 with Answers Chapter 14

(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1

(A) 1 : 1


Q14. Which of the following will increase the current ratio where it is 2 : 1 ?

(a) Payment to creditors
(b) Conversions of receivables into cash
(c) Purchase of goods on credit
(d) Purchase of goods for cash

(a) Payment to creditors


Q15. Long term solvency ratio is judged by which of the following ratio?

(a) Debt equity ratio
(b) Total assets turnover ratio
(c) Liquidity ratios
(d) Operating ratio

(c) Liquidity ratios


Q16. Which of the following ratios provide solvency position of a business in the long run?

(a) Liquidity Ratios
(b) Solvency ratios
(c) Profitability ratios
(d) Turnover ratios

(b) Solvency ratios


Q17. In debt equity ratio, debt refers to Accountancy MCQs for Class 12 with Answers Chapter 14

(a) Short term debts
(b) Total debts
(c) Shareholders’funds
(d) Long term borrowings and long term debts

(d) Long term borrowings and long term debts


Q18. Which of the following transactions will increase debt equity ratio which is 1 : 2?

(a) Issue of shares for cash
(b) Redemption of preference shares
(c) Redemption of debentures
(d) Conversion of debentures into shares

(b) Redemption of preference shares


Q19. Interest coverage is equal to

(a) Interest after interest but before tax / interest on debt
(b) Interest before interest and tax / interest on debt
(c) Interest after interest and debt / interest on debt
(d) Interest on debt / Interest before interest and tax

(b) Interest before interest and tax / interest on debt


Q20. Cost of revenue from operations is the difference between

(a) Revenue from operations + Gross Profit
(b) Revenue from operations – Gross Profit
(c) Revenue from operations – Net profit
(d) Revenue from operations + Net Profit

(b) Revenue from operations – Gross Profit

Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Download

MCQs for Class 12 Accountancy Chapter 1 Accounting for Partnership Firms — Fundamentals
MCQs for Class 12 Accountancy Chapter 2 Change in Profit Sharing Ratio among the Existing Partners
MCQs for Class 12 Accountancy Chapter 3 Admission of a Partner
MCQs for Class 12 Accountancy Chapter 4 Retirement or Death of a Partner
MCQs for Class 12 Accountancy Chapter 5 Dissolution of a Partnership Firm
MCQs for Class 12 Accountancy Chapter 6 Financial Statements of Not-for-Profit Organisations (N.P.O.)
MCQs for Class 12 Accountancy Chapter 7 Issue of Shares
MCQs for Class 12 Accountancy Chapter 8 Issue of Debentures
MCQs for Class 12 Accountancy Chapter 9 Redemption of Debentures
MCQs for Class 12 Accountancy Chapter 10 Financial Statements of Companies
MCQs for Class 12 Accountancy Chapter 11 Financial Statements Analysis
MCQs for Class 12 Accountancy Chapter 12 Comparative Statements
MCQs for Class 12 Accountancy Chapter 13 Common Size Statements
MCQs for Class 12 Accountancy Chapter 14 Accounting Ratios
MCQs for Class 12 Accountancy Chapter 15 Cash Flow Statement

Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Free Download will help you. Accountancy MCQs for Class 12 with Answers Chapter 14 Accounting Ratios with Answer