In NCERT Class 12 Accountancy Chapter 9, titled "Accounting Ratios", students gain insights into the analysis of financial statements using ratios. This chapter focuses on the classification, computation, and interpretation of various accounting ratios, including liquidity, solvency, profitability, and turnover ratios. Understanding these ratios enables better financial decision-making and performance evaluation.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Accountancy Chapter 9 MCQs and previous year questions for detailed practice of NCERT Class 12 Accounting Ratios.
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NCERT Class 12 Accountancy Chapters
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CUET Free Master Classes:
Class 12 Accountancy Chapter 9 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Accountancy Chapter 9: Accounting Ratios. For the full set of 50 questions, download the PDF using the link provided below.
1- Ratios used in analysis of financial statement of a company may be classified as:
(A) Gaining Ratio (B) Liquidity Ratios
(C) Solvency Ratios (D) Activity Ratios (E) Sacrificing Ratio
Choose the correct answer from the options given below:
(a) (A), (B) and (C) only (b) (B), (C) and (D) only
(c) (A), (C) and (E) only (d) (B), (D) and (E) only
2. The ratios calculated to measure the short-term commitments of business is
(a) Liquidity Ratio (b) Activity Ratio (c) Profitability Ratio (d) Solvency Ratio
3. Earning Capacity of a Company is measured by
(a) Working Capital Ratio (b) Profitability Ratio
(c) Solvency Ratio (d) Liquidity Ratio
4. Identify which of the following are normally computed to identify the liquidity of the Business?
A. Proprietary Ratio B. Interest Coverage Ratio
C. Quick Ratio D. Debt Equity Ratio E. Current Ratio
Choose the correct answer from the options given below :
(a) C and E only (b) A, C and E only (c) A, B and C only (d) A, B and D only
5. Quick Ratio is also known as
(a) Quick Asset Ratio (b) Acid – Test Ratio (c) Current Ratio (d) Short – term ratio
Class 12 Accountancy Chapter 9 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 5 sample subjective questions for Class 12 Accountancy Chapter 9: Accounting Ratios. To access all questions, download the PDF from the link provided below.
- These ratios are calculated to measure the short-term solvency of the business. Identify the ratios and state the significance of two ratios included in the above category.
(CBSE 2023, 3M)
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- The Current Ratio of a company is 2 : 1. State giving reasons, which of the following transactions would improve, reduce or not change the ratio:
(a) Purchased goods on credit Rs. 40,000
(b) Sale of furniture of Rs. 8,000 at a loss of Rs. 2,000
(c) Cash received from trade receivables Rs. 15,000
(d) Issued equity shares Rs. 6,00,000
(CBSE 2023, 4M)
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- The Current Ratio of a company is 2 : 1. State giving reasons which of the following transactions would improve, reduce or not change the ratio:
(a) Purchase of goods for cash Rs. 60,000
(b) Purchase of fixed assets for cash Rs. 2,00,000
(c) Sale of goods costing Rs. 20,000 for Rs. 23,000 on credit
(d) Issue of shares Rs. 10,00,000
(CBSE 2023, 4M)
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- Quick ratio of a company is 1 : 1. State, with reason, whether the following transactions will increase, decrease or not change the ratio :
(i) Paid insurance premium in advance Rs.10,000.
(ii) Purchased goods on credit Rs.8,000.
(iii) Issued fully paid equity shares of Rs.1,00,000.
(iv) Issued 9% debentures of Rs.5,00,000 to the vendor for machinery purchased.
(CBSE 2019, 4M)
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- The Quick Ratio of a company is 1.5 : 1. State, giving reasons, which of the following transactions will improve, reduce or not change the quick ratio :
(i) Purchase of goods for cash
(ii) Bills payable paid at maturity
(iii) Sale of goods costing Rs.18,000 for Rs.16,000
(iv) Cash collected from debtors
(CBSE 2019, 4M)
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Sub Areas of Chapter 9: Accounting Ratios
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Chapter Name
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Sub Topics
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Accounting Ratios
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9.1 Introduction
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9.2 Types of Ratios
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9.3 Liquidity Ratios
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9.4 Solvency Ratios
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9.5 Profitability Ratios
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9.6 Turnover Ratios
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9.7 Importance and Limitations of Accounting Ratios
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Review of NCERT Class 12 Accountancy Chapter 9
In NCERT Class 12 Accountancy Chapter 9, "Accounting Ratios," students learn about the systematic analysis of financial performance through ratios. This chapter provides practical knowledge of evaluating a business's profitability, liquidity, solvency, and efficiency.
Mastering this chapter is crucial for financial statement analysis and business decision-making. By practicing MCQs and subjective questions, students can build a strong foundation for exams like CBSE, CUET, and other competitive exams.
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