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Accounting Ratio

Board » Bihar Board » Class 12th » English Medium » Commerce » Entrepreneurship (EPS) » L-12: Accounting Ratio

Objective Questions (MCQs)

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ID- 6511

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

  • (A) Debt
  • (B) Profitability
  • (C) Activity
  • (D) Liquidity
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ID- 6512

2. The ........ is useful in evaluating credit and collection policies.

  • (A) Liquid ratio
  • (B) Current ratio
  • (C) Average payment period
  • (D) Average collection period
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ID- 6513

3. 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
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ID- 6514

4. The analysis involves a comparison of current to past performance and the evaluation of developing kinds—

  • (A) Time Series
  • (B) Marginal
  • (C) Quantitative
  • (D) Cross-section
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ID- 6515

5. The primary concern of creditors when assessing the strength of a firm is the firms—

  • (A) Liquidity
  • (B) Share price
  • (C) Solvency
  • (D) Profitability
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ID- 6516

6. Ratio provides a ............ measure of a company's performance and condition.

  • (A) Qualitative
  • (B) Relative
  • (C) Definite
  • (D) Grass
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ID- 6517
BSEB, 2015,16

7. The current ratio is—

  • (A) Balance Sheet Ratio
  • (B) P/L Ratio
  • (C) Composite Ratio
  • (D) None of these
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ID- 6518

8. Stock Turnover Ratio comes under—

  • (A) Liquidity Ratio
  • (B) Profitability Ratio
  • (C) Activity Ratio
  • (D) Financial Position Ratio
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ID- 6519

9. Which of the following is not an Operating Expense—

  • (A) Advertising Expense
  • (B) Preliminary exp. written off
  • (C) Wages
  • (D) Rent
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ID- 6520

10. The working capital ratio is—

  • (A) liquid ratio
  • (B) current ratio
  • (C) operating ratio
  • (D) none of these
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ID- 6521

11. The most rigorous test of liquidity is—

  • (A) Absolute quick Ratio
  • (B) Current Ratio
  • (C) Liquid Ratio
  • (D) Net profit Ratio
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ID- 6522

12. The two basic measures of liquidity are—

  • (A) Stock & Debtors Turnover Ratio
  • (B) Current ratio & operating ratio
  • (C) Current ratio and liquid ratio
  • (D) Gross & Net Profit Ratio
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