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

1. The ……… ratios are primarily measures of return :

(a) Debt

(b) Profitability

(c) Activity

(d) Liquidity

Ans . (b) Profitability

1. 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

1. 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

1. 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

1. 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

1. 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

1. Ratio provide a ….. measure of a company’s performance for mances and condition :

( a ) Qualitative

( b ) Relative

( c ) Definite

( d ) Gross

Ans . ( b ) Relative

1. Current Ratio is :

(a) Balance Sheet Ratio

(b) P/L Ratio

(c) Composite Ratio

(d) None of these

Ans . ( a ) Balance Sheet Ratio

1. Stock Turnover Ratio comes under :

(a) Liquidity Ratio

(b) Profitability Ratio

(c) Activity Ratio

(d) Financial Position Ratio

Ans . (c) Activity Ratio

1. Which of the following is not an Operating Expense ?

(b) Preliminary exp. written off

( c ) Wages

( d ) Rent

Ans . (b) Preliminary exp. written off

1. Ideal Current Ratio is :

(a) 2 : 1

(b) 1 : 2

(c) 3 : 2

(d) 4 : 1

Ans . (a) 2 : 1

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.

1. Debt equity ratio is :

(a) Solvency Ratio

(b) Profitability Ratio

(c) Liquidity Ratio

(d) Activity Ratio

Ans . (a) Solvency Ratio

1. Working capital ratio is :

(a) Liquid Ratio

(b) Current Ratio

(C) Operation Ratio

(d) None of These

Ans . (b) Current Ratio

1. 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