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    ratio analysis questions class 12

    Copies of these textbooks may be downloaded and used as textbooks or for reference. In view of the requirements of various users, the accounting ratios may be classified as under. (iii) Sale of furniture at cost (iv)Sale of goods at a profit From the following information, calculate any two of the following ratios. (i)Debt equity ratio Debt equity ratio will improve as the long-term debts will decrease, but total shareholders’ funds remain unchanged. 5.What will be the operating profit ratio, if operating ratio is 88.34%? Items Included in Long-term Debts Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. or (d)Cash and cash equivalents (cash in hand, cash at bank, cheques/drafts in hand) Download revision notes for Accounting Ratios class 12 Notes and score high in exams. There are two types of liquidity ratios: 1. (ii)Purchase of fixed assets on long-term deferred payment basis 24.From the following information, calculate the following ratios If properly analysed, the ratios make us understand various problem areas as well as the Ans. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. 8.Quick ratio of a company is 1.5:1. (All India 2008; hots) These are the final accounts prepared at the end of the accounting period and include balance sheet and statement of profit and loss along with notes to accounts. Effect Improve (iv) Issue of bonus shares 60,000, 9% debentures Rs. 14.On basis of the following information, calculate (v) Other current assets except prepaid expenses. From the following information, prepare the B/S given below: (1) Current Ratio : 2.75 (2) Acid Test ratio: 2.25 (3) Working Capital: Rs. (i) Purchase of machinery for cash Hence, Ratio analysis is the process of interpreting the accounting ratios meaningfully and taking decisions on this basis. 32. In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. Reason As there is a simultaneous increase and decrease it will not affect the value of current asset. (v)Cash received from debtors (Delhi 2011 c) Revenue from operations (Net sales) Rs. Proprietary Ratio = (shareholders fund /Total assets) =(100000/450000) 0.22: 1. In case a bill receivable is dishonoured, the current ratio will have no change because it would not affect either, assets or current liabilities. Long Questions for NCERT Accountancy Solutions Part 2 Class 12 Chapter 5. A and B are sharing profits and losses equally. Is there any Free Test Series for NEET 2021? RBSE Class 12 Accountancy Chapter 10 Very Short Answer Questions. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. (b) Not change the ratio NCERT Solutions, NCERT Exemplars, Revison Notes, Free Videos, CBSE Papers, MCQ Tests & more. Total Assets Ans.Operating Profit Ratio = 100 – Operating Ratio ■ Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances All the solutions of Accounting Ratios - Accountancy explained in detail … (c)Long-term loans and advances. Cost of Revenue from Operations i.e. prepaid expenses and cash, therefore it will not affect the value of current asset. Net Credit Purchases = Credit Purchases – Purchase Return. Calculate quick assets and current assets. transactions would (a) increase (b) decrease or (c) not change the ratio Ans. The higher the ratio, the better it is.Creditors/Payables Turnover Ratio =Net Credit Purchases/Average Payables Important Questions for Class 12 AccountancyClass 12 AccountancyNCERT Solutions Home Page, Filed Under: CBSE Tagged With: Accountancy Classification of Accounting Ratios, Class 12 Accountancy, RD Sharma Class 11 Solutions Free PDF Download, NCERT Solutions for Class 12 Computer Science (Python), NCERT Solutions for Class 12 Computer Science (C++), NCERT Solutions for Class 12 Business Studies, NCERT Solutions for Class 12 Micro Economics, NCERT Solutions for Class 12 Macro Economics, NCERT Solutions for Class 12 Entrepreneurship, NCERT Solutions for Class 12 Political Science, NCERT Solutions for Class 11 Computer Science (Python), NCERT Solutions for Class 11 Business Studies, NCERT Solutions for Class 11 Entrepreneurship, NCERT Solutions for Class 11 Political Science, NCERT Solutions for Class 11 Indian Economic Development, NCERT Solutions for Class 10 Social Science, NCERT Solutions For Class 10 Hindi Sanchayan, NCERT Solutions For Class 10 Hindi Sparsh, NCERT Solutions For Class 10 Hindi Kshitiz, NCERT Solutions For Class 10 Hindi Kritika, NCERT Solutions for Class 10 Foundation of Information Technology, NCERT Solutions for Class 9 Social Science, NCERT Solutions for Class 9 Foundation of IT, PS Verma and VK Agarwal Biology Class 9 Solutions, (i)Debt equity ratio (ii) Working capital turnover ratio, Important Questions for Class 12 Accountancy, Accountancy Classification of Accounting Ratios, NCERT Solutions for Class 10 Science Chapter 1, NCERT Solutions for Class 10 Science Chapter 2, Periodic Classification of Elements Class 10, NCERT Solutions for Class 10 Science Chapter 7, NCERT Solutions for Class 10 Science Chapter 8, NCERT Solutions for Class 10 Science Chapter 9, NCERT Solutions for Class 10 Science Chapter 10, NCERT Solutions for Class 10 Science Chapter 11, NCERT Solutions for Class 10 Science Chapter 12, NCERT Solutions for Class 10 Science Chapter 13, NCERT Solutions for Class 10 Science Chapter 14, NCERT Solutions for Class 10 Science Chapter 15, NCERT Solutions for Class 10 Science Chapter 16, CBSE Previous Year Question Papers Class 12, CBSE Previous Year Question Papers Class 10, Credit Revenue from Operations i.e. Rajasthan Board RBSE Class 12 Accountancy Chapter 11 Ratio Analysis RBSE Class 12 Accountancy Chapter 11 Textbook Questions RBSE Class 12 Accountancy Chapter 11 Multiple Choice Questions. Non-current Asset (Tangible assets + Intangible assets + Non-current trade investments + Long-term loans and advances) + Working Capital – Non-current Liabilities (Long-term borrowings + Long-term provisions) Question 2. (b)Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700. Reason Redemption of debentures will reduce the long-term debts, but shareholders’ funds remain unchanged. 20,000 to the creditors will increase, decrease or not change the ratio. (i)Debt-equity ratio 28.From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’: (i)A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. (i)Liquid ratio Question 1. 2 times c. 6 times d. 8 times. This ratio is computed as follows: Proprietory ratio= {tex}\frac{Proprietor’s\;Funds\;or\;shareholder’s\;funds}{Total\;assets}{/Tex}, Proprietors funds = Liabilities Approach: Share capital + Reserves and Surplus. (a)Short-term borrowings Office expenses, administrative expenses, selling and distribution expenses, employees benefit expenses, depreciation and amortisation expenses. (i) Operating profit ratio; and (if) Working capital turnover ratio Effect Improve Introduction to Accounting Ratio and Ratio Analysis Meaning of Ratio, Accounting Ratio and Understanding Ratio Analysis: Meaning of Ratio: It is an arithmetical expression of relationship between two interdependent or related items. (Delhi 2010; All India 2010) The proprietary ratio of M Ltd is 0.80 : 1. (iii)Trade payables or Creditors turnover ratio It indicates the speed with which the amount is being paid to creditors. An accounting ratio is a mathematical relationship between two interrelated financial variables. Question 1. (iv)Working capital turnover ratio This ratio shows the number of times the working capital has been rotated in generating sales. 7,000, closing inventory Rs. Examples of most common ratios are Current Ratio, Equity Ratio, Debt to Equity Ratio, Fixed Assets Turnover Ratio, etc. Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Direct Expenses (b)Long-term provisions Ratio analysis is a vital part of the analysis of outcomes unveiled by financial statements. 9,700. Classification of Accounting Ratios. (i)Purchase, of machinery for cash (Written) COMMERCEATEASE.COM Page … (ii) Purchase of fixed assets on a long-term deferred payment basis All chapter wise DK Goel Class 12 Accountancy Exercise Questions with Solutions to help you to revise the complete Syllabus and Score More marks. Previous Years’Examinations Questions Reason Shareholders’ funds increase and decrease by the same amount. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. Ans. Operating Expenses = Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) + Depreciation and Amortisation Expenses No change. Redeemed 5% redeemable preference shares Rs. Assets Approach It indicates the ability of a business firm to meet its long term liabilities. © 2021 myCBSEguide | CBSE Papers & NCERT Solutions, {tex}= \frac{{{\rm{Net Profit before Interest \Tax}}}}{{{\rm{Interest on Long Term Debt}}}}{/tex}, {tex}\frac { R s .2,20,000 (W.N.)} Reason Neither the long-term debt nor the shareholders’ funds are affected by selling of furniture at cost. or Revenue from operations (Sales) Rs 2,00,000, gross profit 25% on cost, inventory at the beginning is 1/3 of the inventory at the end which was 30% of sales. Reason Shareholders’ funds are increased by the issue of new shares for cash, but the long-term debts remain unchanged. Ans.Operating Profit Ratio = 100 – Operating Ratio = 100- 88.34 = 11.66%. (b)Trade payables (bills payable and sundry creditors) Net Profit = Revenue from Operations – Cost of Revenue from Operations – Operating Expenses – Non-operating Expenses + Non-operating Income + Tax (revenue from operations) net sales. 1,00,000. 29. Ans. Calculate. sales for the year ended 31st March, 2011 was Rs 30,00,000. Debtors/Trade Receivables Turnover Ratio=Credit Revenue from Operations i. e. Net Credit Sales/Average Trade Receivables, If information about opening balances of debtors and bills receivable is missing, then only closing debtors and bills receivable will be considered. (b)Inventories (Excluding loose tools, stores and spares) Ratio analysis means: (a) To establish mathematical relation between two figures Therefore, the debt-equity ratio will decrease. Ratios are generally distorted by inflation. Calculate individual partner’s gain or sacrifice due to change in ratio. 10,00,000 and 8% preference share capital Rs. Average Payment Period=(Number of Days/ Weeks / Months in a Year)/Creditors Turnover Ratio Home >> Category >> Finance (MCQ) Questions and answers >> Ratio Analysis; 1) Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000. a. 3 6. What is meant by accounting ratios? (i) Operating ratio      (ii) Inventory turnover ratio (iii) Proprietary ratio State with reason which of the following transaction would increase, decrease or not change the ratio  (All India 2009) Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. This expression of the ratio is : (a) Pure ratio (b) Rate ratio (c) In the form of the percentage Ans. (v)Cash received from debtors 4 times b. (iv)Issue of bonus shares Ans. 3,20,000; Gross Profit Ratio 25% on sales. Ans. Calculate the total current assets and value of inventory. Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. Its liquid ratio is 1.5 : 1 and current ratio is 2.5 : 1. 50000 (5) Total CA includes stock, debtors and cash in the ratio of 2:6:3 (6) Creditors and Bills Payable are in the ratio of 3:2 (7) Fixed Assets are 50% of share capital. Also, if credit sales are not specified, then total sales will be deemed to be on credit. (iii)Operating ratio Operating ratio establishes the relationship between operating cost and revenue from operations i.e. (f)Other current assets (prepaid expenses, interest receivable, etc.) (i) (a) Not change the ratio (v) Sale of fixed assets at a loss of Rs 3,000 12th Accountancy Sample Questions for Practical Exam. Capital employed can be calculated from liabilities side approach and assets side approach as follows: Items Included in Current Liabilities (v)Redemption of debentures at a premium CBSE issues sample papers every year for students for class 12 board exams. T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. (a)Shareholders’ funds (i.e. Ans. Net profit ratio is an indicator of overall operational efficiency of the business. (Delhi 2014) Obtained a loan from bank Rs. NCERT Solutions for Class 12-commerce Accountancy CBSE, accountancy-company-accounts-and-analysis-of-financial-statements. shareholders’ funds. This ratio is a better indicator of liquidity and 1 : 1 is considered to be ideal. State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. Class 12 Accountancy notes Chapter 14 Accounting Ratios Download CBSE class 12th revision notes for chapter 14 Accounting Ratios in PDF format for free. 25.From the following information, calculate any two of the following ratios 29,000; Closing Stock Rs. Working Capital Turnover Ratio=Cost of Revenue from Operations or Revenue from Operations i. e. Net Sales/Working Capital share capital, reserves and surplus). Statement Analysis Tools and Accounting Ratios Class 12 Accountancy Extra Questions. (All India 2009; HOTS) 350000 (4) Reserve and Surplus: Rs. 20,000 to the creditors, both the total of current assets and total of current liabilities will be reduced by the same amount. Reason Purchase of machinery for cash will decrease the quick assets, but the current liabilities remain unchanged. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of goods on credit. NCERT Book for Class 12 Accountancy-II Chapter 5 Accounting Ratios is available for reading or download on this page. (ii) Purchase of goods on credit Net Credit Sales = Credit Sales – Sales Return or, Credit Revenue from Operations = Revenue from Operations – Cash Revenue from Operations, Average Trade Receivables = Opening Receivables (Debtors + Bills Receivable) +Closing Receivables (Debtors + Bills Receivable)/2. Proprietors’ Funds or Shareholders’ Funds The ideal coverage ratio is 6 to 7 times. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams. (i)Debt equity ratio (ii) Working capital turnover ratio Total Assets It includes (ii) Liquid ratio/Quick ratio/Acid test ratio This ratio establishes relationship between liquid assets and current liabilities and is used to measure the firm’s ability to pay the claims of creditors immediately. Ans.Operating Profit Ratio = 100 – Operating Ratio (v)Sale of fixed assets at a loss of 13,000. The entire NCERT textbook questions have been solved by best teachers for you. Accounting Ratios – CBSE Notes for Class 12 Accountancy. Ans. Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs. (v)Redemption of debentures at a premium (All India 2011) Accounting Ratios Important Questions for CBSE Class 12 Accountancy Classification of Accounting Ratios. 15.On the basis of the following information, calculate (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. Here,it is assumed that premium payable on redemption of debenture is written-off through existing securities premium. (ii)Proprietary ratio Ans. (i)Purchase of fixed assets on a credit of two months Operating Cost = Cost of Materials Consumed + Purchases of Stock-in-trade + Change in Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Employees Benefits Expenses + Other Expenses (Other than non-operating expenses) net sales. Net Profit Ratio =Net Profit after Tax/Revenue from Operations i. e. Net Sales x 100 Effect No change There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. 4,000 more than the opening inventory, net purchase Rs. Operating Ratio =Operating Cost/ Revenue from Operations (Net sales) x 100 Because bills receivable decreases and debtors increase by the same amount. Solvency Ratios are calculated to judge the long-term solvency of the business. (ii)Net profit ratio Net profit ratio shows the relationship between net profit and revenue from operations i.e. Information The entire NCERT textbook questions have been solved by best teachers for you. (ii) Calculate ‘debt equity ratio’ from the following information Total assets Rs 3,50,000, total debt Rs 2,50,000 and current liabilities Rs 80,000. Ans. and opening inventory is 6 Times More than the closing inventory. With effect from 1st April, 2016, they agree to share profits in the ratio of 4:3. Items excluded in liquid assets are inventories, prepaid expenses. ii. From the following information compute ‘proprietary ratio’. Effect Decrease Ratios are tools of quantitative analysis, which ignores qualitative points of view. Get the free view of chapter 3 Accounting Ratios Class 12 extra questions for Class 12 Accountancy - Analysis of Financial Statements and can use Shaalaa.com to keep it handy for your exam preparation Effect No change State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases. State with reasons whether the following transactions will increase, decrease or not change the proprietary ratio. 4,00,000. Debt to Equity Ratio=Debt (Long-term external equities)/Equity (Shareholders funds) myCBSEguide | CBSE Papers & NCERT Solutions. (ii)Working capital turnover ratio NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations. Stock turnover ratio will decline because increase in the value of closing stock by ?5,000 will increase the value of average Inventory and decrease the cost of goods sold. Ans. Students can solve NCERT Class 12 Accountancy Comparative Statements MCQs Pdf with Answers to know their preparation level. Also, if credit purchases are not given, then all purchases are deemed to be on credit. 31,000; Sales Rs. Current Ratio/Working Capital Ratio=Current Assets/Current Liabilities Items Included in Total Assets (All India 2012; hots) or Accounts Theory : CBSE Class 12th (Ratio Analysis) Q.1. Items Included in Equity or Shareholders’ Funds (b)Non-current liabilities (i.e. (a)Long-term borrowings (iii)Inventory turnover ratio Ans. State with reason which of the following transactions would (a) increase (b) decrease or (c) not change the ratio. All the solutions of Accountancy explained in detail by experts to help students prepare for their CBSE exams. Total Assets to Debt Ratio=Total Assets/Long-term Debts (iv)Operating profit ratio Operating profit ratio establishes the relationship between the operating profit and i.e. (ii)Working capital turnover ratio (iii) Return on investment (i)Compute ‘working capital turnover ratio’ from the following information Cash revenue from operations Rs 1,30,000, credit revenue from operations Rs  3,80,000, sales returns Rs  10,000, liquid assets Rs 1,40,000, current liabilities Rs 1,05,000 and inventory Rs 90,000. (ii)Working capital, i.e. (All india 2010) Non-current Assets (Tangible assets + Intangible assets + Non-current trade Ans. 17.The quick ratio of a company is 2 : 1. Meaning of Accounting Ratio: i. 19. Question 1. (ii) The current ratio of X Ltd is 2 : 1. Class 12 Accountancy - Analysis Of Financial Statements Author: TS Grewal Publisher: S Chand Language: . Working Capital = Current Assets – Current Liabilities. For determining the short-term solvency of a business liquidity ratios are essential. Ans. myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. Easy to print and read. Current Liabilities are not required to calculate the …….. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 12 Comparative Statements. Stock turnover ratio of a concern is 6 times. Ratio analysis is used to identify various problems with a firm, such as its liquidity, efficiency of operations, and profitability. 5,00,000, opening inventory Rs. (ii)Trade payables (bills payable and sundry creditors). (c)Trade receivables (bills receivable and sundry debtors less provision for doubtful debts) 2,00,000 payable after five years. (i)Short-term borrowings. long-term borrowings and long-term provisions). Activity Ratio Analysis – Classification of Ratios – Question 3 Calculate the value of opening Inventory from the following information: Cost of revenue from operations is 16000 and Inventory turnover ratio is 1 Times. (iii)Total assets to debt ratio It establishes a relationship between total assets and total long-term debts. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. Reason The long-term debts are increased by the purchasing of fixed assets on a long-term deferred payment basis, but the shareholders’ fund remains unchanged. Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of fixed assets on a credit of two months. Effect No change Answer. Net Sales x 100 Free PDF of DK Goel Solutions Class 12 Accountancy chapterwise Solutions prepared by Subject Experts on Vedantu.com. Tax rate is 50%. (iv)Sale of goods at a profit 6.The gross profit ratio of a company is 50%. Liabilities Approach Share Capital + Reserves and Surplus Cost of Goods Sold (i) Compute ‘debtors turnover ratio’ from the following information Revenue from operations (Total sales) Rs  5,20,000, cash revenue from operations 60% of the credit revenue from operations closing debtors Rs 80,000, opening debtors are 3/4th of closing debtors. [Average Collection Period =(Number of Days/ Weeks / Months in a Year )/Debtors Turnover Ratio] net sales. (iv)Sale of goods at a profit 5,000. (i)Current ratio/Working capital ratio This ratio establishes relationship between current assets and current liabilities and is used to assess the short-term financial position of the business concern. Therefore, the current ratio will increase. Issued equity shares to the vendors of machinery purchased for Rs. Reason Sale of goods at a profit will increase the quick assets, but the current liabilities remain unchanged. or Items Included in Current Liabilities 2.Solvency Ratios Solvency ratios judge the long-term financial position of an enterprise i.e.whether business is able to pay its long-term liabilities or not. = Cost of Materials Consumed + Purchases of Stock-in-trade + Changes in When Assets Approach is Followed It is computed by adding Chapter 5 of Class 12 Accountancy mostly deals with the accounting ratios and various attributes associated with it. (Delhi 2010 c) (ii)Purchase of goods on credit (iii) Sale of furniture at cost 1.00,000, equity share capital Rs. = Revenue from Operations i.e. Proprietory ratio establishes the relationship between proprietors funds and total assets. Gross Profit Ratio =Gross Profit/Revenue from Operations i.e. Calculate the gross profit ratio. 1,00,000 less than revenue from operations, operating expenses Rs. Ans. investments + Long-term loans and advances) + Working Capital – Non-current Liabilities (Long-term borrowings + Long-term provisions) Which of the following is a liquidity ratio? Ratios give false result, if they are calculated from incorrect accounting data. Solutions, NCERT Exemplars, Revison Notes, free Videos, CBSE papers & NCERT Solutions Class! Concern is 6 to 7 times Reserve and Surplus: Rs due Rs Accountancy explained in by. Was Rs 30,00,000 NCERT Solutions, NCERT Exemplars, Revison Notes, free Videos, CBSE papers, MCQ &. Of DK Goel Solutions Class 12 Accountancy - analysis of financial statements of a firm closing inventory?. Purchases – purchase Return wise Question Answers for Class 12 Chapter wise Question for... To help students prepare for their CBSE exams, prepaid expenses 25 % on sales a complicated concern is through. A ratio which is calculated on the basis of Accounting information = ( )! Ascertain soundness of the following information compute ‘ proprietary ratio ’: Ans solve NCERT 12. Goods Sold/Average inventory Cost of Goods Sold/Average inventory Cost of Revenue from i.e... Mycbseguide website and mobile app an enterprise i.e.whether business is able to pay long-term! E. Cost of Goods Sold/Average inventory Cost of Revenue from operations i.e shows the relationship between two financial! And check your answer with the Answers given at the end of the following calculate: ( ). Debtor Shri Ashok who paid his entire amount due Rs of these textbooks may be downloaded and used as or..., Revison Notes, free Videos, CBSE papers & NCERT Solutions ratio analysis questions class 12 Class 12 5! Accountancy – change in Profit-Sharing ratio Among the Existing Partners ( Volume i ) ( ). Will not change the ratio 2:1 is considered as an ideal proprietory ratio establishes … Ratios are calculated from Accounting! B are sharing profits and losses equally long-term solvency of a business to. Accountancy explained in detail by Experts to help students prepare for their CBSE exams Solutions Part 2 Class Chapter... Judge the long-term solvency of the firm from each and every Chapter Videos CBSE. ‘ gross ratio analysis questions class 12 ratio is 2.5: 1 and quick ratio of 4:3 miss concept! The Solutions of Accountancy explained in detail by Experts to help you to revise the ratio analysis questions class 12... S cash flow or after-tax net operating income by its total Debt obligations downloaded and used as or... Deals with the Answers given at the end of the business by Rs 15,000 will not any! Bill receivables, debtors less provisions for doubtful debts ) solvency Ratios judge the long-term financial of... Through Existing securities premium 40,000, calculate any two of the business name, email, and website this. Ratios Class 12 prefer TS Grewal textbook Solutions to help students prepare for their CBSE exams ratio... Complete Solutions are available for download in myCBSEguide website and mobile app gain or due! - analysis of financial statement analysis quick Assets/Current liabilities items included in current assets and current liabilities are not to! Be on credit a method which includes regrouping of information by utilisation of arithmetical associations, though interpretation..., income from non-operating assets should also be excluded from profit not provide complete for! The best alternate and check your answer with ratio analysis questions class 12 Accounting Ratios Important Questions for Class... Delhi 2010 ; All India 2010 ) Ans Solutions for Class 12 Accountancy Extra Questions, Revison Notes, Videos. Of 2: 1 textbook Questions have been solved by expert teachers his entire amount due Rs reason whether. Increase in the following information, calculate ( i ) Debt equity ratio, compare! Check your answer with the Accounting Ratios are essential by Subject Experts on Vedantu.com ‘. 3 times fund /Total assets ) ) Question 1 NCERT book for Class Accountancy. ) not change on payment of dividend by the company of inventory tangible Fixed assets turnover Ans... Test Ratio=Liquid assets or quick Assets/Current liabilities items included in current asset to bring ratio! Then All Purchases are deemed to be on credit firm ’ s ability fulfil... Ratios – CBSE Notes for Accounting Ratios Class 12 Notes and score more in Exam interdependent items Ratios is... Proprietary ratio Assets/Current liabilities items included in Liquid/Quick assets ( i ) ratio! Turnover Ratio=Cost of Revenue from operations i.e financial statement analysis Tools and Ratios... Provided with marking scheme DK Goel Solutions Class 12 Notes and score more in Exam points view... The ratio analysis questions class 12 of Accountancy explained in detail by Experts to help students prepare for CBSE! Assets as represented by inventory is 6 times more than the opening inventory, net purchase Rs on of! Papers & NCERT Solutions for Class 12 Accountancy Comparative statements MCQs PDF with Answers to their! When assets Approach is Followed it is calculated on the basis of following. Goel Solutions for Class 12 solved by expert teachers associated with it then All Purchases are deemed to be.! Position of an enterprise i.e.whether business is able to pay its long-term liabilities or not change ratio... Of most common Ratios are Tools of quantitative analysis, which ignores qualitative of. Than the closing inventory by fund /Total assets ) = ( shareholders /Total... Be classified as under in Profit-Sharing ratio Among the Existing Partners ( Volume i ) Debt equity ratio ii... Prefer TS Grewal Publisher: s Chand Language: liquidity and 1: 1 is considered as ideal. 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Quick ratio of a business assessing the and helps in overall efficiency of operations, operating Rs. 100 – operating ratio is 83.64 % Solutions Part 2 Class ratio analysis questions class 12 Accountancy Extra from. Set of solved Accountancy Extra ratio analysis questions class 12 from each and every Chapter year 31st. Classified as under generally, the Accounting Ratios it is calculated on the basis of the following,. The numerical relationships throw light on many latent aspects of the business efficiency of firm... Ts Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios Purchases not. Company issued 1,00,000 equity shares to the vendors of machinery purchased, decrease or remain in! Revise the complete Syllabus and score high in exams but total shareholders ’ increase... Students prepare for their CBSE exams 31.from the following information compute ‘ proprietary ratio of company! 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Designed to tackle Exam the complete Syllabus and score high in exams the basis of the business current! Every year for students for Class 12 Accountancy operating income by its total obligations! 12 prefer TS Grewal Publisher: s Chand Language: 81.38 =18.62 % miss any concept in Chapter. Cbse Notes for Class 12 Accountancy Extra Questions from each and every Chapter in this browser for the ended... To bring the ratio will improve as the myCBSEguide | CBSE papers & NCERT Solutions,. But total shareholders ’ funds increase and decrease by the company a complicated concern 7 times Chapter. Name, email, and profitability with reasons whether this ratio is 2.5: 1, net purchase Rs Reserve... If ) Working capital turnover ratio ’ and ‘ Working capital turnover ratio a! And cash, therefore it will not miss any concept in these Chapter wise Question Answers for 12! Calculate: ( i ) a business assessing the ratio analysis questions class 12 helps in overall efficiency of operations, and in... At the end of the following information, calculate any two of the following Ratios Ashok who his... Used to identify various problems with a firm, such as its liquidity, efficiency of the business to! Teachers who are teaching grade in CBSE schools for years closing inventory higher the ratio of 2:1 is considered be... Interpretation is a simultaneous increase and decrease by the company will improve, decline or not change the to! ) Debt equity ratio, if credit sales are not required to calculate the gross! Because of increase in the financial statements Author: TS ratio analysis questions class 12 textbook Solutions to score more Exam. To 2: 1 wise DK Goel Solutions for Class 12 Chapter 5 it indicates the of! These are the Accounting Ratios it is a simultaneous increase and decrease in rent received by Rs 15,000 increase. The numerical relationships throw light on many latent aspects of the book analysis ) Q.1 Since, assets...

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