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Class 12 Accounting Ratios worksheet
CBSE Accountancy. Liquidity, solvency, activity and profitability ratios: current, quick, debt-equity, proprietary, interest coverage, turnover ratios, gross and net profit, operating ratio and return on investment. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
Current ratio is a:
- activity ratio
- profitability ratio
- solvency ratio
- liquidity ratio
Answer
(d) liquidity ratio
- 2.
The proprietary ratio is a:
- profitability ratio
- activity (turnover) ratio
- solvency ratio
- liquidity ratio
Answer
(c) solvency ratio
- 3.
The net profit ratio is calculated as:
- revenue from operations ÷ working capital
- profit before interest and tax ÷ interest on long-term debt
- quick assets ÷ current liabilities
- profit after tax ÷ revenue from operations × 100
Answer
(d) profit after tax ÷ revenue from operations × 100
Section B · short answer
- 4.
What is an accounting ratio?
Answer
A mathematical relationship between two accounting figures, shown as a pure ratio, a percentage, times or a fraction.
- 5.
Write the formula for (a) the net profit ratio (b) the proprietary ratio
Answer
(a) profit after tax ÷ revenue from operations × 100 (b) shareholders’ funds ÷ total assets
Section C · long answer
- 6.
Explain the classification of accounting ratios.
Answer
Liquidity (current, quick), solvency (debt-equity, total assets to debt, proprietary, interest coverage), activity (inventory, receivables, payables, working capital turnover) and profitability (gross profit, operating, net profit, return on investment).
Fresh sheets for your child
In the app, every Accounting Ratios sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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