## 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