12th Class Accountancy Accounting Ratios Question Bank

done Case Based - Accounting Ratios Total Questions - 44

• question_answer1)
  You are required to answer the following question 1 to 4: Vinod Ltd. has provided the following information: Total Assets Rs.18,00,000; Tangible Fixed Assets Rs.11,00,000; Non-current Investment 3,00,000; Shareholders Funds Rs.11,00,000; Non-Current Liabilities Rs.5,00,000. Current Ratio of the company will be:
  A)
  1:1  done clear
  B)
  2:1 done clear
  C)
  2.5:1 done clear
  D)
  1:2 done clear
  View Solution play_arrow

• question_answer2)
  If company pays Rs.40,000 to the creditors through online transfer. Now Current Ratio will be:
  A)
  2:1  done clear
  B)
  2.5:1 done clear
  C)
  2.25:1 done clear
  D)
  1:1 done clear
  View Solution play_arrow

• question_answer3)
  Goods purchased for Cash Rs.1,20,000. Now Current Ratio will be:
  A)
  2:1 done clear
  B)
  2:5:1 done clear
  C)
  2.25:1 done clear
  D)
  1:1 done clear
  View Solution play_arrow

• question_answer4)
  Sale of an old machinery at cost in cash for Rs.1,00,000. Now Current Ratio will be:
  A)
  2.25:1 done clear
  B)
  2:1  done clear
  C)
  1.5:1 done clear
  D)
  2.5:1 done clear
  View Solution play_arrow

• question_answer5)
  You are required answer the following questions 5 to 8: Vinod Ltd. has provided the following information on 31st March 2021: Total Assets Rs.8,00,000: Debentures Rs.2,00,000 (Redeemable after 4 years); Long-term Bank Loan Rs.1,50,000 Long-term Provisions Rs.50,000; Debentures Rs.1,40,000 (Redeemable with in next 6 months); Trade Payables 60,000. Debt to Equity Ratio of the company will be:
  A)
  2.5:1  done clear
  B)
  2.7:1 done clear
  C)
  2:1  done clear
  D)
  4:1 done clear
  View Solution play_arrow

• question_answer6)
  Issue of Fresh Debentures of Rs.1,00,000. Now Debt to Equity Ratio will be:
  A)
  2:1 done clear
  B)
  2.5:1 done clear
  C)
  3:1 done clear
  D)
  1:1 done clear
  View Solution play_arrow

• question_answer7)
  Issue of fresh Equity Shares of Rs.50,000. Now Debt to Equity Ratio will be:
  A)
  2.5:1 done clear
  B)
  1.5:1 done clear
  C)
  2:1 done clear
  D)
  1.6:1 done clear
  View Solution play_arrow

• question_answer8)
  Old and damaged Furniture costing 1,30,000 was sold just for Rs.30,000. Now Debt to Equity Ratio will be:
  A)
  4:1 done clear
  B)
  3:1 done clear
  C)
  2:1 done clear
  D)
  1:1 done clear
  View Solution play_arrow

• question_answer9)
  Answer the following question from the above information 9 to 13:

  Rishi Ltd. has provided following information at the end of the accounting year:

  Current ratio 3:1

  Quick ratio 1.2 : 1

  Working capital: 1,80,000

  Non-current asset: 5,30,000

  Shareholders fund: 4,00,000

  Current asset of the company will be:

  A)
  90,000 done clear
  B)
  1,80,000 done clear
  C)
  3,60,000 done clear
  D)
  2,70,000 done clear
  View Solution play_arrow

• question_answer10)
  Quick Asset of the company will be:
  A)
  1,72,000 done clear
  B)
  1,62,000 done clear
  C)
  1,08,000 done clear
  D)
  98,000 done clear
  View Solution play_arrow

• question_answer11)
  Inventory of the company will be:
  A)
  1,08,000 done clear
  B)
  1,20,000 done clear
  C)
  1,52,000 done clear
  D)
  1,62,000 done clear
  View Solution play_arrow

• question_answer12)
  Capital employed of the company will be:
  A)
  7,10,000 done clear
  B)
  8,00,000 done clear
  C)
  4,90,000 done clear
  D)
  6,50,000 done clear
  View Solution play_arrow

• question_answer13)
  Debt equity Ratio of the company will be:
  A)
  0.675:1 done clear
  B)
  0.8:1 done clear
  C)
  0.7:1 done clear
  D)
  0.775:1 done clear
  View Solution play_arrow

• question_answer14)
  Answer the following question from the above information 14 to 17:

  After preparing the financial statements for the year 31st March 2021. XYZ Ltd. has provided the following information:

  Working Capital Rs.45,000;

  Total Debt Rs.1,00,000 and

  Long-term Debt Rs.70,000

  Non-current asset 4,25,000

  Current asset of the company will be:

  A)
  90,000 done clear
  B)
  85,000 done clear
  C)
  70,000 done clear
  D)
  75,000 done clear
  View Solution play_arrow

• question_answer15)
  Capital employed of the company will be:
  A)
  4,70,000 done clear
  B)
  4,30,000 done clear
  C)
  5,00,000 done clear
  D)
  1,00,000 done clear
  View Solution play_arrow

• question_answer16)
  Proprietary ratio of the company will be:
  A)
  0.9:1 done clear
  B)
  0.8:1  done clear
  C)
  0.86:1 done clear
  D)
  0.94:1 done clear
  View Solution play_arrow

• question_answer17)
  Current ratio of the company will be:
  A)
  3:1 done clear
  B)
  2.5:1  done clear
  C)
  2.83:1 done clear
  D)
  2:1 done clear
  View Solution play_arrow

• question_answer18)
  Answer the following question from the above information 18 to 21:

  A business has a:

  Total revenue from operation: 6,00,000

  Cash revenue from operation: 20% of credit revenue from operation

  Excess of opening inventory over closing inventory: 10,000

  Purchases during the year 4,00,000

  Wages: 40,000

  Inventory turnover ratio: 9 times

  Credit Revenue of the company will be

  A)
  4,00,000 done clear
  B)
  6,00,000  done clear
  C)
  1,00,000 done clear
  D)
  5,00,000 done clear
  View Solution play_arrow

• question_answer19)
  Cost of Revenue from operation the company will be:
  A)
  4,50,000 done clear
  B)
  4,40,000 done clear
  C)
  4,30,000 done clear
  D)
  4,60,000 done clear
  View Solution play_arrow

• question_answer20)
  Closing inventory of the company will be
  A)
  45,000 done clear
  B)
  55,000 done clear
  C)
  50,000 done clear
  D)
  40,000 done clear
  View Solution play_arrow

• question_answer21)
  Gross profit ratio of the company will be:
  A)
  20% done clear
  B)
  15% done clear
  C)
  25% done clear
  D)
  30% done clear
  View Solution play_arrow

• question_answer22)
  Answer the following question from the above information 22 to 26:

  Ridhi Ltd. has provided the following information:

  Credit Revenue from operation: 3,00,000 .

  Cash Revenue from operation: 25 % of total revenue from operation

  Total purchases during the year: 2,40,000

  Cash purchase: 20% of Credit purchase

  Excess of closing inventory over opening inventory: 10,000

  Carriage Inward: 20,000

  Trade receivable turnover ratio: 15 times

  Opening debtor was 1/3rd of closing debtor

  Average trade payable: 50,000

  Cash Revenue of the company will be

  A)
  3,00,000 done clear
  B)
  4,00,000 done clear
  C)
  2,00,000 done clear
  D)
  1,00,000 done clear
  View Solution play_arrow

• question_answer23)
  Credit Purchase of the company will be
  A)
  40,000 done clear
  B)
  2,00,000 done clear
  C)
  1,60,000 done clear
  D)
  2,40,000 done clear
  View Solution play_arrow

• question_answer24)
  Cost of revenue from operation of the company will be
  A)
  2,00,000 done clear
  B)
  2,50,000 done clear
  C)
  2,40,000 done clear
  D)
  2,60,000 done clear
  View Solution play_arrow

• question_answer25)
  Closing trade receivable will be
  A)
  90,000 done clear
  B)
  10,000  done clear
  C)
  30,000 done clear
  D)
  45,000 done clear
  View Solution play_arrow

• question_answer26)
  Trade Payable turnover ratio will be
  A)
  4 times done clear
  B)
  3 times done clear
  C)
  5 times done clear
  D)
  2 times done clear
  View Solution play_arrow

• question_answer27)
  Answer the following question from the above information 27 to 30 :

  RVP Ltd. has provided the following information on 31st March 2021:

  Net profit before tax: 6,00,000

  Salary: 50,000

  Loss by fire: 15,000

  Printing & Stationery: 10,000

  Interest on debenture 40,000

  Depreciation: 20,000

  Gain on sale of fixed asset: 15,000

  Tax rate 20%

  Revenue from operation: 20,00,000

  Gross Profit ratio will be

  A)
  64% done clear
  B)
  20% done clear
  C)
  36%      done clear
  D)
  40% done clear
  View Solution play_arrow

• question_answer28)
  Operating Profit ratio will be
  A)
  65% done clear
  B)
  68% done clear
  C)
  32% done clear
  D)
  35% done clear
  View Solution play_arrow

• question_answer29)
  Operating ratio will be
  A)
  65% done clear
  B)
  35% done clear
  C)
  23%      done clear
  D)
  68% done clear
  View Solution play_arrow

• question_answer30)
  Net profit ratio will be
  A)
  20% done clear
  B)
  25% done clear
  C)
  30% done clear
  D)
  24% done clear
  View Solution play_arrow

• question_answer31)
  You are required to answer the following questions 31 to 36 : Following information is provided by Gagan Ltd. on 31st March 2021

  Particulars		Note No.	2021
  I.	Equity and Liabilities
  1.	Shareholders' Funds
  	(a) Share Capital		25,00,000
  	(b) Reserves and Surplus	1	10,00,000
  2.	Non-current Liabilities
  	Long term Borrowings	2	17,50,000
  3.	Current Liabilities
  	(a) Short-term Borrowings	3	7,50,000
  	(b) Other Current Liabilities	4	3,50,000
  	Total		63,50,000
  II.	ASSETS
  1.	Non-current Assets
  	Property, Plant & Equipment (Fixed Assets):
  	(i)  Tangible Assets		45,15,000
  	(ii) Intangible Assets		1,00,000
  	Non-Current Investment	5	5,00,000
  2.	Current Assets:
  	(a) Current Investment		2,50,000
  	(b) Inventories	6	5,35,000
  	(c) Cash and Cash Equivalents		4,50,000
  	Total		63,50,000

  Notes to Accounts

  Particulars		2021
  1.	Reserves and Surplus
  	Surplus i.e. Balance in Statement of P/L	10,00,000
  	Long-term Borrowings
  	12% Debentures	17,50,000
  3.	Short-term Borrowings
  	Cash Credit	7,50,000
  4.	Other Current Liabilities
  	12% Debentures: Current Maturities of Long-term Debts	3,50,000
  5.	Non-current Investment
  	Trade Investment	5,00,000
  6.	Inventories
  	Stock	4,00,000
  	Loose Tools	35,000
  	Stores and spares	1,00,000

  Current Ratio of the firm will be:
  A)
  1:1 done clear
  B)
  2.25:1 done clear
  C)
  2:5:1 done clear
  D)
  2:1 done clear
  View Solution play_arrow

• question_answer32)
  Debt to Equity Ratio of the Company will be:
  A)
  2:1 done clear
  B)
  1:1 done clear
  C)
  0.5:1 done clear
  D)
  0.75:1 done clear
  View Solution play_arrow

• question_answer33)
  Total Assets to Debt Ratio will be:
  A)
  0.28:1 done clear
  B)
  2.5:1 done clear
  C)
  2.25:1 done clear
  D)
  3.6:1 done clear
  View Solution play_arrow

• question_answer34)
  Proprietary Ratio of the Company will be:
  A)
  1:1 done clear
  B)
  0.55:1 done clear
  C)
  0.75:1 done clear
  D)
  1.5:1 done clear
  View Solution play_arrow

• question_answer35)
  Capital Employed of the Company will be:
  A)
  52,00,000 done clear
  B)
  52,50,000 done clear
  C)
  53,00,000 done clear
  D)
  53,50,000 done clear
  View Solution play_arrow

• question_answer36)
  If the interest coverage ratio of the company is 6 Times, find Net Profit before Interest and Tax:
  A)
  10,50,000 done clear
  B)
  12,60,000 done clear
  C)
  12,00,000 done clear
  D)
  15,12,000 done clear
  View Solution play_arrow

• question_answer37)
  Read the following hypothetical extract of Rehan Limited and answer the given questions on the basis of the same 37 to 40 :

  YEAR	2020	2019	2018
  AMOUNT	(IN Rs.)	(IN Rs.)	(IN Rs.)
  Outstanding Expenses	50,000	40,000	25,000
  Prepaid Expenses	3,00,000	2,50,000	3,50,000
  Trade Payables	18,00,000	16,00,000	14,00,000
  Inventory	12,00,000	10,00,000	11,00,000
  Trade Receivables	11,00,000	8,00,000	10,00,000
  Cash in hand	17,00,000	12,00,000	15.00,000
  Revenue from operations	24,00,000	18,00,000	20,00,000
  Gross Profit Ratio	12%	15%	18%

  Current Ratio for the year 2020 will be _________ (Choose the correct alternative)
  A)
  2:1 done clear
  B)
  1.8:1 done clear
  C)
  2.32:1 done clear
  D)
  2.4:1 done clear
  View Solution play_arrow

• question_answer38)
  Quick Ratio for the year 2018 will be _________ (Choose the correct alternative)
  A)
  1.75:1 done clear
  B)
  1.8:1 done clear
  C)
  0.94:1 done clear
  D)
  1.25:1 done clear
  View Solution play_arrow

• question_answer39)
  Inventory turnover ratio for the year 2020 will be ____ (Choose the correct alternative)
  A)
  1.62 times done clear
  B)
  1.82 times done clear
  C)
  1.55 times done clear
  D)
  1.92 times done clear
  View Solution play_arrow

• question_answer40)
  Cost of Revenue from Operations for the year 2020 would be ____ (Choose the correct alternative)
  A)
  Rs.21,12,000 done clear
  B)
  Rs.21,13,000 done clear
  C)
  Rs.21,15,000 done clear
  D)
  Rs.21,17,000 done clear
  View Solution play_arrow

• question_answer41)
  You are required to answer the following questions from the above information 41 to 44. From is the information of ''GAGAN LTD''.

  Particulars	2019	2020
  Working capital Turnover ratio	4 times	6 times
  Trade payables	30,000	50,000
  Bank overdraft	40,000	25,000
  Outstanding Expenses	10,000	25,000
  Revenue From operations	16.00.000	18.00,000
  Gross Profit %	25% on cost	20% on sales
  Credit Purchases	1,00,000	1,20,000
  Cash Purchases	45,000	55,000

  Calculate amount of working Capital of the 2019?
  A)
  Rs.4,00,000 done clear
  B)
  Rs.3,00,000 done clear
  C)
  Rs.2,45,000 done clear
  D)
  Rs.1,00,000 done clear
  View Solution play_arrow

• question_answer42)
  Calculate Current Ratio of the 2020?
  A)
  2.67:1 done clear
  B)
  4:1 done clear
  C)
  1:1 done clear
  D)
  2:1 done clear
  View Solution play_arrow

• question_answer43)
  Calculate Trade payable turnover ratio of 2020?
  A)
  2.5 times done clear
  B)
  2.75 times done clear
  C)
  3 times done clear
  D)
  2.4 times done clear
  View Solution play_arrow

• question_answer44)
  Calculate Cost of Revenue from operations for the year 2019 and 2020?
  A)
  2019 Rs.12,00,000 and 2020 Rs.14,40,000 done clear
  B)
  2019 Rs.12,40,000 and 2020 Rs.14,40,000 done clear
  C)
  2019 Rs.12,80,000 and 2020 Rs.14,40,000 done clear
  D)
  2019 Rs.14,40,000 and 2020 Rs.12,80,000 done clear
  View Solution play_arrow