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# Free Online MCQs for Class – 12 Accountancy Chapter 14 – Accounting Ratios

Free Online MCQs Questions of CBSE Class – 12 Accountancy Chapter 14 – Accounting Ratios with Answers. Free Online MCQs Questions for Class 12 Accountancy with Answers was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Accountancy Class – 12 Accountancy Chapter 14 – Accounting Ratios Multiple Choice Questions with Answers to know their preparation level on Success Roar Classes Website itself.

## Chapter 14 – Accounting Ratios with Answers

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
2. Current Ratio is :
(A) Solvency Ratio
(B) Liquidity Ratio
(C) Activity Ratio
(D) Profitability Ratio
3. Long term solvency is indicated by :
(A) Current Ratio
(B) Quick Ratio
(C) Net Profit Ratio
(D) Debt/Equity Ratio
4. Debt Equity Ratio is :
(A) Liquidity Ratio
(B) Solvency Ratios
(C) Activity Ratio
(D) Operating Ratio
5. 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
6. 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
7. 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%
8. 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
9. Which of the following is not operating expenses?
(A) Office Expenses
(B) Selling Expenses
(D) Loss by Fire
10. 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

MCQs Questions of Class – 12 Accountancy Chapter 14 – Accounting Ratios