Tools Of Financial Analysis Accounting Ratios CBSE Questions & Answers

Tools Of Financial Analysis Accounting Ratios

This is Accountancy Class 12 Tools of Financial Analysis Accounting Ratios CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Calculate Interest Coverage Ratio Net Profit (after taxes) = Rs. 1,00,000 Fixed interest charges on long = Rs. 20,000 Term borrowing Rate of tax 50percent
  • A
    15 times
  • B
    12 times
  • C
    11 times
    Correct
  • D
    10 times
2
Calculate working capital ratio
Question 2 figure 1
  • A
    1 times
  • B
    5 times
    Correct
  • C
    3 times
  • D
    2 times
3
Calculate Creditors turnover ratio from the following information. Closing creditors- Rs.450000, opening creditors- Rs.150000, closing bill payables- Rs.50000, opening bill payables- Rs.150000, Purchase – Rs.2100000, purchase return- Rs.100000, cash purchase-Rs.400000
  • A
    3 times
  • B
    1 times
  • C
    4 times
    Correct
  • D
    2 times
4
In an business cash sales are Rs.72000,credit sales are Rs.8000, cost of good sold is Rs.60000.Find Gross profit ratio
  • A
    25 percent
    Correct
  • B
    75 percent
  • C
    35 percent
  • D
    65 percent
5
Calculate operating ratio
Question 5 figure 1
  • A
    68.87
  • B
    90.67
    Correct
  • C
    80.57
  • D
    78.57
6
Compute Operating Profit Ratio from the following
Question 6 figure 1
  • A
    50 percent
    Correct
  • B
    75 percent
  • C
    60 percent
  • D
    25 percent
7
Calculate Operating Profit ratio when Net Sales are Rs. 10,00,000, Gross Profit is 20percent & Operating Expenses Rs.20,000
  • A
    16 percent
  • B
    20percent
  • C
    18 percent
    Correct
  • D
    14 percent
8
From the following calculate Return on investment
Question 8 figure 1
  • A
    20.55 percent
  • B
    32.65 percent
  • C
    22.55 percent
  • D
    22.65 percent
    Correct
9
Calculate Debtor turnover ratio – debtors- Rs.40000, credit sales- 25percent of cash sales, closing debtors-Rs. 60000, total sales- Rs.200000
  • A
    2.33 times
  • B
    1.33 times
    Correct
  • C
    3.33 times
  • D
    4.33 times
10
Calculate Debt collection period– debtors- Rs.40000, credit sales- 25percent of cash sales, closing debtors-Rs. 60000, total sales- Rs.200000
  • A
    9 month
    Correct
  • B
    12 month
  • C
    10 month
  • D
    8 month
11
Accrued Incomes are shown under ________
  • A
    Inventrories
  • B
    Other Current Assets
    Correct
  • C
    Investment
  • D
    None of these
12
A company’s stock turnover ratio is 5 times. Stock at the end is Rs.20000 more than at the beginning. Sales are Rs.800000,rate of gross profit is 25 percent on cost .Find out cost of good sold
  • A
    Rs.460000
  • B
    Rs.250000
  • C
    Rs.640000
    Correct
  • D
    Rs.840000
13
A company’s stock turnover ratio is 5 times. Stock at the end is Rs.20000 more than at the beginning. Sales are Rs.800000,rate of gross profit is 25 percent on cost .Find opening and closing stock
  • A
    Rs.118000, Rs.138000
    Correct
  • B
    Rs.138000, Rs.158000
  • C
    Rs.128000, Rs.148000
  • D
    Rs.108000, Rs.128000
14
The cost of good sold is Rs.500000, Opening stock – Rs.400000, closing stock – Rs.60000. Calculate inventory turnover ratio
  • A
    20 times
  • B
    10 times
    Correct
  • C
    30 times
  • D
    40 times
15
From the following information calculate interest coverage ratio :
Question 15 figure 1
  • A
    9.4 times
    Correct
  • B
    98.4 times
  • C
    9.2 times
  • D
    8.23 times