Accountancy MCQ Class 12 Chapter 10 | Accounting Ratios | Accountancy Quiz for Class 12 and Other Competitive Exams

Accountancy MCQ Class 12 Chapter 10: Check the below NCERT MCQ Questions for Accountancy MCQ Class 12 Chapter 10 with Answers Pdf free download. Accountancy MCQ Class 12 Chapter 10 Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accountancy MCQ Class 12 Chapter 10 with Answers to help students understand the concept very well.

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Accountancy MCQ Class 12 Chapter 10

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1. Current Ratio =
(a) Current assets/Current liabilities
(b) Liquid assets/Current liabilities
(c) Liquid assets/Current assets
(d) Fixed assets/Current assets

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2. Profitability Ratios are generally expressed in :
(a) Simple Ratio
(b) Percentage
(c) Times
(d) None of these

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3. Which of the following is included in ‘Current Assets’?
(a) Long-term investment
(b) Short-term investment
(c) Furniture
(d) Preliminary expenses

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4. Proprietory Ratio indicates the relationship between proprietor’s funds and ______.
(a) Reserve
(b) Share Capital
(c) Total Assets
(d) Debentures

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5. Which of the following assets is not taken into consideration in calculating the acid-test ratio?
(a) Cash
(b) Bills receivable
(c) Stock
(d) None of the above

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6. Profitability ratio is generally shown in ______.
(a) Simple ratio
(b) Percentage
(c) Times
(d) None of the above

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7. The ratios are primarily measures of earning capacity of the business.
(a) Liquidity
(b) Activity
(c) Debt
(d) Profitability

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8. Which one of the following ratios is most important in determining the long-term solvency of a company ?
(a) Profitability Ratio
(b) Debt-Equity Ratio
(c) Stock Turnover Ratio
(d) Current Ratio

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9. What does the creditors turnover ratio take into account?
(a) Total credit purchases
(b) Total credit sales
(c) Total cash sales
(d) Total cash purchases

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10. Which of the following is an operating’ income ?
(a) Sale of Merchandise
(b) Interest Income
(c) Dividend Income
(d) Profit on the sale of old car

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