1.State with reason whether repayment of long-term loan will result in increase,decrease or no change of debt equity ratio. or (A) Long Term Debts/Shareholder’s Funds (B) 6 months (ii)Proprietary ratio It establishes the relationship between proprietors’ funds and total assets. (B) 3 : 1 (B) 1.5 : 1 Ideal Quick Ratio is : (D) 93%, 112. Debt-equity ratio will be : Previous Years’Examinations Questions (A) ₹1,50,000 Fixed Assets ?3,30,000; Current Assets ₹1,90,000; Preliminary Expenses ₹30,000; Equity Share Capital ₹2,44,000; Preference Share Capital ₹1,70,000; Reserve Fund ₹58,000. (A) 1 : 1 (A) 1.11 : 1 In view of the requirements of various users, the accounting ratios may be classified as under. A Company’s Quick Ratio is 1.8 : 1; Liquid Assets are ₹5,40,000 and Inventory is ₹1,50,000. All the solutions of Accounting Ratios - Accountancy explained in detail by … (b)Company issued 1,00,000 equity shares of Rs 10 each to the vendors of machinery purchased. (B) ₹36,000 If average inventory is ₹50,000 and closing inventory is ₹2,000 less than the opening inventory, opening and closing inventory will be : Assuming that the current ratio is 2 : 1, purchase of goods on credit would: (D) 65%, 111. Ans. A Company’s Current Assets are ₹8,00,000 and its current liabilities are ₹4,00,000. net sales. Effect No change Cash Balance ₹15,000; Trade Receivables ₹35,000; Inventory ₹40,000; Trade Payables ₹24,000 and Bank Overdraft is ₹6,000. (C) Gross Profit ratio and Operating ratio Its working capital will be : (A) Activity Average Payables=Opening Payables (Creditors + Bills Payable) + Closing Payables (Creditors + Bills Payable)/2 The formula for calculating the Trade Receivables Turnover Ratio is : 83. (C) 3 : 1 (C) 8 Times (Delhi 2013) TEST YOUR UNDERSTANDING I • State which of the following statements are True or False. (C) 30% (A) Cost of revenue from operations + Selling Expenses/Net revenue from operations Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. What will be Inventory Turnover Ratio? 26.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Debt equity ratio On the basis of following data, a Company’s Total Assets-Debt Ratio will be: Working Capital ₹2,70,000; Current Liabilities ₹30,000; Fixed Assets ₹4,00,000; Debentures ₹2,00,000; Long Term Bank Loan ₹80,000. 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. (A) Sales efficiency Assuming liquid ratio of 1.2 : 1, cash collected from debtors would : Fixed Assets ₹5,00,000; Current Assets ₹3,00,000; Equity Share Capital ₹4,00,000; Reserve ₹2,00,000; Long-term Debts ₹40,000. 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