Accounting Ratios — Class 12 Accountancy PYQs

(a) The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase in Quick Ratio ?
(A) Cash received from debtors
(B) Sold goods on credit
(C) Purchased goods on credit
(D) Purchased goods on cash
OR
(b) Which of the following item is not included in cash and cash equivalents ?
(A) Trade Receivables
(B) Demand deposits with bank
(C) Short-term marketable securities
(D) Cheques in hand

The Debt Equity Ratio of Manak Enterprises is 2.5 : 1. Which of the following transaction will result in increase in this ratio ?
(A) Purchase of goods on credit ₹ 2,00,000.
(B) Payment to creditors ₹ 3,00,000.
(C) Issue of debentures ₹ 6,00,000.
(D) Sale of furniture of the book value of ₹ 4,00,000 at a profit of 10%.

(a) Short-term highly liquid investments qualify as cash equivalents if they are realisable into known amounts of cash from the date of acquisition within a period of :
(A) 6 months or less
(B) 9 months or less
(C) 12 months or less
(D) 3 months or less
OR
(b) Which of the following item is not included in cash and cash equivalents ?
(A) Trade Receivables
(B) Demand deposits with bank
(C) Short-term marketable securities
(D) Cheques in hand

(a) Calculate opening and closing Trade Payables from the following information :

Particulars
Total purchases	₹ 15,00,000
Cash purchases	25% of credit purchases
Trade payables turnover ratio	4 times
Closing trade payables	two times of opening trade payables

OR

(b) From the following information, calculate 'Return on Investment' :

Particulars	Amount (₹)
Shareholders Funds	16,00,000
10% Debentures	8,00,000
Current Liabilities	2,00,000
Current Assets	5,00,000
Non-Current Assets	21,00,000

Net profit after tax was ₹ 3,00,000 and the tax amounted to ₹ 1,00,000.

___________ ratios are calculated to determine the ability of the business to service its debt in the long run.
(A) Liquidity
(B) Turnover
(C) Solvency
(D) Profitability

The Quick Ratio of a company is 1 : 2. Which of the following transactions will result in an increase in this ratio ?
(A) Cash received from debtors
(B) Sold goods on credit
(C) Purchased goods on credit
(D) Purchased goods on cash

From the given information, calculate :
(a) Quick Ratio
(b) Inventory Turnover Ratio

Particulars	Amount (₹)
Current Assets	4,00,000
Inventory	1,00,000
Current Liabilities	2,00,000
Net Profit Before Tax	7,20,000
Revenue from Operations	10,00,000
Gross Profit Ratio 20%

From the given information, calculate :

From the given information, calculate :

(ii) ________ is also known as Acid-Test Ratio.
(A) Current Ratio
(B) Quick Ratio
(C) Gross profit Ratio
(D) Operating Ratio