Eps Class 12 Chapter 12 Objective
12th Entrepreneurship Chapter 12 Objective : Here you can find class 12th eps Objective questions for board exam2022.Accounting ratio objective questions is very important for board exam 2022. eps class 12 chapter 12 objective question answer.
Accounting ratio
1.The following groups of ratios primarily measure risk :
(a) Activity , liquidity and profitability
(b) Activity , debt and profitability
(c) Liquidity , activity and common share
(d) Liquidity , activity and debt
Ans . (b) Activity , debt and profitability
- The ……… ratios are primarily measures of return :
(a) Debt
(b) Profitability
(c) Activity
(d) Liquidity
Ans . (b) Profitability
- The …….. is useful in evaluating credit and collection policies :
(a) Liquid Ratio
(b) Current Ratio
(c) Average payment period
(d) Average collection period
Ans . (d) Average collection period
- Ratios are a measure of the speed with which various accounts are converted into sales or cash :
(a) Activity
(b) Debt
(c) Solvency
(d) Liquidity
Ans . (d) Liquidity
- Analysis involves comparison of current to past performance and the evaluation of developing kinds:
(a) Time Series
(b) ) Marginal
( c ) Quantitative
( d ) Cross – sectional
Ans . (a) Time Series
- The two basic measure es of liquidity are :
( a ) Stock & Debtors Turnover Ratio
( b ) Current ratio & operating Ratio
( c ) Current ratio and liquid Ratio
( d ) Gross & Net Profit Ratio
Ans . ( c ) Current ratio and liquid Ratio
- The primary concern of creditors when assessing the strength of a The firm is the firm’s :
( a ) Liquidity
( b ) Share price
( c ) Solvency
( d ) Profitability
Ans . ( d ) Profitability
- Ratio provide a ….. measure of a company’s performance for mances and condition :
( a ) Qualitative
( b ) Relative
( c ) Definite
( d ) Gross
Ans . ( b ) Relative
- Current Ratio is :
(a) Balance Sheet Ratio
(b) P/L Ratio
(c) Composite Ratio
(d) None of these
Ans . ( a ) Balance Sheet Ratio
- Stock Turnover Ratio comes under :
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) Financial Position Ratio
Ans . (c) Activity Ratio
- Which of the following is not an Operating Expense ?
(a) Advertising Expense
(b) Preliminary exp. written off
( c ) Wages
( d ) Rent
Ans . (b) Preliminary exp. written off
- Ideal Current Ratio is :
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Ans . (a) 2 : 1
- Net working capital means :
(a) CA – C.L.
(b) C.A. + C.L.
(c) C.L. – C.A.
(d) None of the above
Ans . (a) CA – C.L.
- Debt equity ratio is :
(a) Solvency Ratio
(b) Profitability Ratio
(c) Liquidity Ratio
(d) Activity Ratio
Ans . (a) Solvency Ratio
- Working capital ratio is :
(a) Liquid Ratio
(b) Current Ratio
(C) Operation Ratio
(d) None of These
Ans . (b) Current Ratio
- The most rigorous test of liquidity is :
(a) Absolute Quick Ratio
(b) Current Ratio
(c) Liquid Ratio
(d) Net profit Ratio
Ans . (a) Absolute Quick Ratio